#TrainingRepaymentAgreements

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!