As we noted in Part I of this special two-part blog, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued an important policy memorandum last month. In GC Memorandum 25-01, Abruzzo attacked as unlawful both “stay-or-pay” provisions (where workers agree to repay their employer for certain benefits if the employee prematurely leaves employment) and non-compete agreements. Part I covered the remedies proposed by the GC for employees subject to non-compete provisions found unlawful by the Board. Here, Part II addresses stay-or-pay provisions, the GC’s legal position that such provisions are presumptively unlawful, and the remedies she will seek for employees subject to stay-or-pay provisions.Continue Reading NLRB GC to Seek Broad Remedies for Non-Compete and Stay-or-Pay Provisions – Part II

A recent New York Times article highlighted the use and, frankly, abuse of Training Repayment Agreement Provisions (TRAP – oooooh, good acronym!), also known as stay-or-pay provisions. Under a TRAP, if an employee leaves their job before a certain specific amount of time has passed, they are required to pay back monies ostensibly tied to the costs of training, or finding a replacement, or even lost profits. The use of TRAPs appears to have significantly increased in recent years, and the Biden Administration is paying attention – and it is not happy.Continue Reading “Stay-or-Pay”? A Potential TRAP for Employers!