Employee Training Repayment Agreement Provisions: Increased Scrutiny, Litigation Update, Pitfalls to Avoid

Labor and Employment attorneys Stephen Baumann and Hannah Fitzgerald will lead a BARBRI webinar on employee training repayment agreement provisions (TRAPs). Also known as training repayment agreements (TRAs) and "stay or pay" provisions, TRAPs require employees to pay certain amounts of money for employer-provided training if they leave their jobs before a specified time. Historically used for high-paying and/or specialized positions, these agreements are now being used more frequently for broader groups of employees. In response, state attorneys general (AGs) have increased enforcement against employers for using TRAPs, and states such as Colorado have advanced legislation targeting them. During this presentation, Mr. Baumann and Ms. Fitzgerald will talk about the risks of incorporating TRAPs in employment agreements, review federal and state AG enforcement actions, and share best practices for determining whether to use TRAPs and how to draft them to avoid unwanted scrutiny.