U.S. companies charging employees for job training if they quit
When a Washington state beauty salon charged Simran Bal $1,900 for training after she quit, she was shocked.
When a Washington state beauty salon charged Simran Bal $1,900 for training after she quit, she was shocked.
Not only was Bal a licensed esthetician with no need for instruction, she argued that the trainings were specific to the shop and low quality.
Bal’s story mirrors that of dozens of people and advocates in healthcare, trucking, retail and other industries who complained recently to U.S. regulators that some companies charge employees who quit large sums of money for training.
Nearly 10% of American workers surveyed in 2020 were covered by a training repayment agreement, said the Cornell Survey Research Institute.
The practice, which critics call Training Repayment Agreement Provisions, or TRAPs, is drawing scrutiny from U.S. regulators and lawmakers.
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