Reskilling

If your company pays for an employee’s training and then they quit, should they have to pay back the money?

Some employers see it as an incentive, critics say it unfairly pressures unhappy workers into staying on staff.
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Employers across a range of industries including retail, manufacturing, and healthcare might still be feeling the sting of the Great Resignation, as they are increasingly demanding reimbursement from their former employees for the cost of training them, according to a recent Reuters report.

This may seem like a punitive response, similar to a spurned lover changing a once-shared Netflix password. But it’s a fairly common practice called a training agreement, known by critics as a training repayment agreement provision (TRAP). They’re often included within the pages of employment contracts, according to the Student Borrower Protection Center.

“TRAPs function in the real world as a penalty for leaving a job. And, even if this TRAP is not enforced, its presence has the power to accomplish the intended consequence of pressuring workers into staying,” the organization wrote in a July press release.

An August class action lawsuit accused national pet goods chain PetSmart of using a TRAP that “requires PetSmart groomers to take on $5,000 of debt to PetSmart in exchange for Grooming Academy training. PetSmart forgives that debt only if the worker stays at their job for two years after they begin training, no matter how little they are paid or how poorly they are treated,” the complaint said. Saddling employees with debt upon leaving a job is illegal under California law, the suit alleged.

These clauses have caught the attention of lawmakers, including Ohio Senator Sherrod Brown, who Reuters reported is considering measures to rein in the practice.

We recently asked HR Brew readers whether or not they’d consider charging soon-to-be former employees for training. While 67% of readers answered “no,” 23% answered “yes.” A further 10% said they already do charge some former employees for training.

If you’ve had experience enforcing TRAPs, or dealing with any blowback from implementing them, be sure to be in touch.—SB

Do you work in HR or have information about your HR department we should know? Email [email protected] or DM @SammBlum on Twitter. For completely confidential conversations, ask Sam for his number on Signal.

Quick-to-read HR news & insights

From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.