Training repayment agreement provisions (TRAPs),are a new form of “stay-or-pay” contract that indebts employees to their bosses. Often inserted into contracts without workers’ knowledge, these restrictive labor covenants turn employer-sponsored job training and education programs into conditional loans that must be paid back — sometimes at a premium — if employees leave before a set date.
Employers argue that these clauses are a way to recoup their investment in employees who decide to leave the company prematurely. But these contracts have come under fire from labor groups and regulators. Oftentimes, the amount of debt demanded under TRAP contracts — which can be upward of $50,000 — is far higher than the employer’s training costs.
SLAVERY, WITH EXTRA STEPS.
Back when I was first trying to get a job in the programming world (in the mid-90s), I submitted my resume to a supposed job-finding company named SearchMasters. When I went to interview with them, I learned that their fee was 33% of your salary for your first six months on the job. This was clearly insane, but it got even worse: if you quit the job or were fired before the six months was up, you were immediately liable to pay SearchMasters the remainder of what their fee would have been in its entirety. I told the dude (an obvious steroid user squeezed into a garish tight suit) “I thought indentured servitude was illegal” and at one point I found myself trying to extract my resume from under his arm while he was alpha-male glowering at me while leaning on it with his full weight.
I dealt with a lot of headhunting firms in my first few years of working and it’s a scummy industry, but SearchMasters put them all to absolute shame. And this was a big room with like 30 agents working in it, so there must have been thousands of poor bastards that had fallen for their bullshit, just in my city alone.
Edit: I mis-remembered this. The fee was 33% for the first year, but you were only on the hook for six months of that if you quit before the six months was up.