As regulators crack down on noncompete agreements that bar workers from finding better jobs, employees across the country are increasingly bound by a new form of “stay-or-pay” contract that indebts them to their bosses.

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.

    • Washedupcynic@lemmy.caOPEnglish
      91·
      13 days ago

      Yup, malicious compliance. Be incompetent enough on the job so your employer fires you, potentially negating the TRAP clause.