In a letter to the Federal Trade Commission (FTC), 20 organizations highlighted new research on the growing use of Training Repayment Agreement Provisions (TRAPs). This new research was published as the FTC continues its work on its proposed rule that would ban traditional and de facto non-competes, including TRAPs.
Researchers uncovered a rise in survey respondents indicating they have worked under a TRAP from 4.1 percent in 2014 to 8.7 percent in 2020. However, not all workers experience TRAPs the same way. The researchers found that:
- TRAPs are more common for younger workers.
- More educated workers appear more likely to enter TRAPs.
- The use of TRAPs is uneven among labor markets. Certain industries appear to commonly rely on TRAPs, while other industries rely on other means to retain workers.
Read the Letter: 20 Organization Letter to FTC Highlights Growing Use of TRAPs, and Urges the Commission to Ban Their Use
Read the Article by the Researchers: First Evidence on the Use of Training Repayment Agreements in the US Labor Force