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.
Uhhh, don’t the employers get to keep all the profit from the employee’s productivity because their role is to take financial risks to reap the rewards?
And the employees just get their paycheck because they are just selling their time to the employer and not participating in the risk vs reward?
This is just the 37th consecutive flavor of socialize the losses, privatize the profits.