The Practical Employment Law Podcast: Are You Caught in a TRAP?

Training repayment agreement provisions (TRAPs) are a hot topic lately. These agreements, which may be stand alone or included in a broader employment agreement, require employees who have completed an employer provided training program to reimburse the employer for some or all of the cost of the training if they leave within a certain timeframe. The agreements are unpopular with employees and have become somewhat controversial but courts have often enforced them against departing employees. Are they right for your business? Here are a few considerations before you set a TRAP: 

  1. Does your business have a need for TRAPs?
  2. Beware of unintended consequences such as difficulty recruiting and retaining employees;
  3. You will probably have to go to court to enforce a TRAP and you may be counter sued;
  4. Make sure the TRAP reflects reality;
  5. Get professional help with TRAPs.

Listen in to find out how your business can avoid problems with TRAPs. You can listen here.

Tags: Labor & Employment Law
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KMK Law articles and blog posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. The laws/regulations and interpretations thereof are evolving and subject to change. Although we will attempt to update articles/blog posts for material changes, the article/post may not reflect changes in laws/regulations or guidance issued after the date the article/post was published. Please consult with counsel of your choice regarding any specific questions you may have.

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