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Member Benefit

Legislators and Regulators Looking Into Training Repayment Agreements

Published Mon Oct 24 2022

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Training repayment agreement provisions, or TRAPs, are drawing scrutiny from legislators and regulators. Under such arrangements, employees who quit are charged large sums of money for the training provided by their employer. Simran Bal, a licensed esthetician, was charged $1,900 after she quit. She represents one of thousands of similar cases across the US. Nearly 10 percent of American workers are laboring under TRAPs, but lawmakers are seeking to change this. Ohio senator Sherrod Brown is working to end the practice federally by introducing a bill next year. At the state level, attorneys general like Minnesota’s Keith Ellison are seeking to rein it in. The Consumer Financial Protection Bureau is also investigating the legality of the practice after receiving complaints that TRAPs limit worker mobility by preventing current employees from finding better jobs due to the financial constraints repayment might impose.

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