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.
I agree with this point. My org has tuition reimbursement. The caveat are you have to have worked at least part time with the organization for a year before you are eligible, you pay for the class upfront with a max reimbursement of $1000 per semester, you take classes from an accredited college that confers degrees, you stay employed while you take the class, you pass the class with a C, and you are still employed with the org when you get reimbursed. We have lots of young people that already have an associates or bachelors degree working for us, and I like to show them this program as a path for slowly working towards a more advanced degree. Once you get the reimbursement each semester, there is no obligation to keep working for the organization. It’s a perk we give employees that can sometimes benefit the employer.