Founder
Employers are increasingly using a new tactic to gain leverage over their workers: Training Repayment Agreement Provisions, or TRAPs. These contract terms require employees to repay their employer for costs such as training or other expenses if they leave their job.
TRAPs often demand large repayment amounts regardless of why or when the worker leaves. Employers may even send the debt to collectors, damaging the worker’s credit. The threat of unaffordable debt and lawsuits can trap employees in jobs they want or need to leave, blocking opportunities for better pay or safer working conditions.
TRAPs are not limited to a single industry. They appear in retail, healthcare, hospitality, transportation, and other sectors as well. They can even be imposed on lower-wage and immigrant workers, who are especially vulnerable to financial harm and have little to no bargaining power.
Although most TRAP disputes are handled under contract or employment law, federal anti-trafficking law may also apply in extreme cases. The Trafficking Victims Protection Reauthorization Act (TVPRA) is a federal law that prohibits forced labor and imposes civil and criminal liability on traffickers. While TRAPs themselves are not explicitly regulated under the TVPRA, severe coercion, such as debt bondage, may fall within this law.
Before you sign any agreement that includes a repayment provision, take steps to protect yourself:
- Read your contract carefully. Look for any repayment clauses, and make sure you understand the terms.
- Question vague or excessive terms. If the repayment amount or timeframe seems unreasonable, raise concerns before signing.
- Get legal advice. Even if you feel pressured to sign in order to get the job, knowing the risks before you sign is essential to protect your future.
If you are facing a TRAP and are uncertain about your options, consult an experienced employment lawyer. You can schedule an appointment with Amanda here.
