As regulators crack down on noncompete agreements that bar workers from finding better jobs, employees across the country are increasingly bound by a new form of “stay-or-pay” contract that indebts them to their bosses.

Training repayment agreement provisions (TRAPs),are a new form of “stay-or-pay” contract that indebts employees to their bosses. Often inserted into contracts without workers’ knowledge, these restrictive labor covenants turn employer-sponsored job training and education programs into conditional loans that must be paid back — sometimes at a premium — if employees leave before a set date.

Employers argue that these clauses are a way to recoup their investment in employees who decide to leave the company prematurely. But these contracts have come under fire from labor groups and regulators. Oftentimes, the amount of debt demanded under TRAP contracts — which can be upward of $50,000 — is far higher than the employer’s training costs.

SLAVERY, WITH EXTRA STEPS.

  • Washedupcynic@lemmy.caOPEnglish
    111·
    12 days ago

    This is one of the reasons why job hopping in this day and age is a thing, and people in right to work states at-will states bounce with no notice. A pension was something that gave an employee an incentive to be loyal to the company and have a vested interest in seeing the company succeed. Lately employers are barely matching 401K/Roth contributions if they even do it at all. Employer sponsored medical coverage is another form of golden handcuffs if the coverage is comprehensive and low cost for the employee.

    I know I can get paid 20K more doing what I do in private industry, but my state job gives me insurance without a deductible that I pay $12 a month for, plus eligibility for a pension after 5 years of work, plus 4 weeks of vacation in a year. (With the health insurance I trade back 8 days of vacation time for a $110 discount on the premium.) Every time I think about making more money, all of those other perks make me decide I would rather keep the lower paying job I have. When I crunch the numbers of what my vacation time would be worth, plus the full COBRA price for my insurance premium, those benefits are already worth more than 20K. I don’t feel trapped, because I like my work and boss, but I can see how other people might make the choice to keep a job they hate when the benefits are amazing or better than what the current job market offers.

    • Bronzebeard@lemmy.zip
      5·
      12 days ago

      You probably mean At-Will states, which is all but one of them. Right to Work is an anti union thing.

      • Washedupcynic@lemmy.caOPEnglish
        5·
        12 days ago

        Thank you for the clarity on that. I forgot that right to work means you can’t be compelled to join a union when your workplace is unionized.