More U.S. companies charging employees for job training if they quit
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More U.S. companies charging employees for job training if they quit
According to Reuters, an increasing number of businesses or companies are charging employees for the cost of their training if they leave during the training.
Workers from a variety of industries, including trucking, retail, and hairstyling, are being required to pay for their training.
According to the Cornell Survey Research Institute, about 10% of American workers polled in 2020 were covered by a training payback arrangement.
The technique is being investigated by American authorities and lawmakers. Critics refer to it as “TRAPs,” or training repayment agreement provisions.
Sen. Sherrod Brown, D-Ohio, is researching legislative options on Capitol Hill with the intention of drafting a measure to stop the practice the following year, according to an aide.
While the Justice Department and Federal Trade Commission have received complaints about the practice, the Consumer Financial Protection Bureau has also started to investigate it.
Despite low unemployment, the usage of training agreements is increasing, presumably giving workers greater leverage, according to Jonathan Harris, a professor at Loyola Law School in Los Angeles.
Employers are seeking strategies to prevent employees from quitting without increasing pay or enhancing working conditions, according to Harris.
According to a CFPB official who was not authorized to comment on the record, the bureau, which stated in June that it was looking into the agreements, has started to concentrate on how they may make it difficult for skilled workers with years of education, like nurses, to find new, better positions.
The official stated, “We have heard from workers and worker organizations that the items may be limiting job mobility.
Since the late 1980s, TRAPs have been used sparingly, mostly in high-paying jobs where employees got beneficial training. But, according to Harris of Loyola, the agreements have spread more recently.
The National Federation of Independent Business, or NFIB, was among those who criticized the CFPB’s efforts, claiming that the problem was beyond the agency’s purview because it had nothing to do with consumer financial goods and services.
“CFPB should defer to those governments, which are closer to the people of the states than the CFPB,” it continued. “(Some state governments) have the power to regulate employer-driven debt.
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