You accept a job, and your new employer informs you that you will be required to go through training before you begin work. Perhaps that training is to obtain a particular licence, like a commercial driver’s license or a certification that you’ve completed 10,000 hours of eyebrow threading training, or perhaps the training is more a matter of learning how your employer wants you to perform a function, for which you were already licensed or qualified, but their way.
To get the job, you agree to the training, but at some point down the road, you decide that you no longer want the job. Maybe you don’t want to work for the employer, now that you’ve come to know more about the company or people. Maybe you got a better offer along the way and decide that the job wasn’t as great as you thought. Whatever the reason, you decide to quit. That’s your right, of course. Or is it?
When a Washington state beauty salon charged Simran Bal $1,900 for training after she quit, she was shocked.
Not only was Bal a licensed esthetician with no need for instruction, she argued that the trainings were specific to the shop and low quality.
Bal’s story mirrors that of dozens of people and advocates in healthcare, trucking, retail and other industries who complained recently to U.S. regulators that some companies charge employees who quit large sums of money for training.
Upon signing up for the job, putative employees sign a Training Repayment Agreement Provision (TRAP) which provides that if an employee resigns before completing a certain period of employment, they must reimburse employers for the cost of their training.
Nearly 10% of American workers surveyed in 2020 were covered by a training repayment agreement, said the Cornell Survey Research Institute.
The practice, which critics call Training Repayment Agreement Provisions, or TRAPs, is drawing scrutiny from U.S. regulators and lawmakers.
The argument from employers is that there is a significant cost in training new employees for the job, and they are willing to expend it provided the new people don’t cut and run, leaving them holding the bag on training costs and with no new trained employee to show for it. On the one hand, new employees sign off on TRAPS when they take the job, often as part of their ordinary employment agreement. It’s rarely a big deal, since they’ve just taken a job and aren’t looking to argue with, and perhaps piss off, their new employer before they even start. And if they anticipated quitting before starting, chances are they wouldn’t take the job at all.
Some employees argue that the training, though mandated by the employer, is more a formalistic requirement than anything useful.
Bal said she was happy when she was hired by the Oh Sweet salon near Seattle in August 2021.
But she soon found that before she could provide services for clients, and earn more, she was required to attend trainings on such things as sugaring to remove unwanted hair and lash and brow maintenance.
But, she said, the salon owner was slow to schedule the trainings, which would sometimes be postponed or cancelled. They were also not informative; Bal described them as “introductory level.” While waiting to complete the training, Bal worked at the front desk, which paid less.
When she quit in October 2021, Bal received a bill for $1,900 for the instruction she did receive. “She was charging me for training for services that I was already licensed in,” said Bal.
Another distinction is between training that enables a trainee to get a licence that holds independent value, which she can use on future jobs, as opposed to employer-mandated but useless training of little or no value to the employee otherwise.
While an employer cannot stop a person from quitting since slavery and indentured servitude was outlawed, they can exercise their rights under the TRAP to demand, and sue for, reimbursement for what they claim to be the cost of training. That puts the employee in a difficult, if not untenable, position of walking away from a job and being saddled with not insignificant debt, often for training of no value to them.
Are TRAPS creating new debt slaves, employees unable to leave a job because they can’t escape the costs assessed by employers for training of little or no value to the employee? If the problem is that the employer’s working conditions are onerous, must the employee choose between debt and a miserable job?
While employees may sign these TRAP agreements, forming a contract, is it a contract of adhesion, a contract not entered into knowingly since they have no idea what the training will be worth or what working conditions might be? Should TRAPS be allowed or should they be held unenforceable as making employees tantamount to debt slaves?
*Tuesday Talk rules apply.
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slumlords being slumlords. people suck
Won’t be long now before we hear the calls for the government to “forgive” these “debts” too.
Having home through this process to get my CDL, they are a useful and necessary thing. The problems arise when companies view them as an additional source of income and charge exhorbant rates or aren’t up front and honest about what it entails.
If you attend one of the Military Academies, West Point or Annapolis etc., affirm your commitment before your third year, and then drop out or are separated involuntarily, you must reimburse the Academy for your education.
True, but at West Point you receive an education most of which is applicable outside the armed forces, so you have received value for money. That contrasts with many of the civilian cases under discussion, where the training is of little value anywhere else. Also, West Point cadets do not perform a service for their employer. Their training takes up all of their time. In many of the civilian cases, on the other hand, the training is mixed with work, so the trainee is providing a service for the employer.
Just wait until this gets expanded to include the cost of the mandatory cultural sensitivity and preferred pronoun usage training. Then, further, to require repayment if the employee ever leaves. If not prevented, businesses will pass through the cost of government sponsored oppression to the employees. The common maxim for this is “shit flows downhill.”
It is my opinion that if the TRAP has no transferable value then it should be unenforceable.
..and if it does have a transferable value it will be copy-writed and you will not be allowed to use Company A’s training at Company B..
My office pays for law grad’s licenses to practice and will give them a salary to basically be interns while we wait for them to join the bar. So far, three new attorneys we hired in this fashion picked up and left a few months in. We’ve thought about trying to at least recoup the cost of their law license.
I suppose my thought is if its transferrable you ought to pay for it if you don’t make it past a probation period.
Well, look who’s on the evil employers’ side now.
If it’s coupled with a contract for employment for a term, it’s entirely reasonable. But it seems employers want the benefit of such a contract, without the burden.
For what it’s worth, these neither new or limited to service industries. Back in the 80s, I interviewed at Ross Perot’s EDS company which had something similar for software engineers. I should have walked out of the interview but it was not something that occurred to me as a new grad.
In my opinion, it should be just a cost of doing business and not passed on to the departing employee. And how’s it really work anyway? The employer is going to pay an attorney to file a lawsuit to collect a relatively meager amount? In NYS at least, I don’t think the employer could lawfully withhold the money from the last paycheck under Labor Law Section 193.
It’s almost always below small claims jurisdiction, so no attorney needed.
I don’t believe corporations can appear pro se in small claims court except in commercial cases. I’d be surprised if these claims would be covered as they typically deal with consumer transactions.
I don’t think employment contracts are consumer transactions.
Exactly my point.
They just send it to a collection agency and let then deal with the legal costs.