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  1. What We Do
  2. Workplace Debt & Labor Exploitation
  3. Training Repayment Agreement Provisions (TRAPs)

Training Repayment Agreement Provisions (TRAPs)


  • Press Releases
    Apr 24, 2024

    Advocates Condemn U.S. Chamber of Commerce-Led Lawsuit to Block Biden Administration’s Landmark Effort to Ban Non-Competes

    Lawsuits look to right-wing judges to overturn final rule, which frees millions from coercive contracts like Training Repayment Agreement Provisions (Traps) and is expected to generate more than $400 billion in increased wages.

    More


  • Press Releases
    Apr 23, 2024

    Advocates Applaud the Federal Trade Commission’s Ban on TRAPs and Stay-or-Pay Contracts that Function as Non-Competes

    The FTC’s decision to ban de facto non-competes, like stay-or-pay contracts and TRAPs, will empower millions of workers.

    More


  • Fact Sheets
    Apr 22, 2024

    Fact Sheet: FTC Final Non-Competes Rule

    April 23, 2024, the FTC issued a final rule that bans the use of traditional and de facto non-compete agreements, which includes stay-or-pay contracts. See our fact sheet on TRAPs and more.

    More


  • Press Releases
    Apr 17, 2024

    CFPB Halts Silicon Valley Predatory Student Lending Scheme, Bans Disgraced Tech Founder from Student Loan Industry

    Austen Allred, pioneering “Income Share Agreement” loan shark and founder of for-profit coding bootcamp BloomTech (formerly “Lambda School”) is named in federal enforcement action; company and founder must cancel debt owed by some current and former students.

    More


  • Letters & Memos
    Apr 2, 2024

    20 Organizations Send Letter to FTC, Calls for a Ban on TRAPs, Highlighting Their Growing Use

    20 organizations wrote the FTC to highlight new research documenting the growing use of TRAPs, and called for the FTC to ban their use in the final non-compete rule.

    More


  • Press Releases
    Mar 21, 2024

    Cross-Post: Judge Rules That Requiring Workers To Pay For Training Benefiting Employers Violates The Law

    A federal judge denies a motion to dismiss in Fredericks v. Ameriflight, ruling that when employers use TRAPs to try to charge workers for on-the-job training, they may be violating the minimum wage laws. The court also held that the TRAP operated as a “de facto”non-compete by preventing workers from leaving their jobs.

    More


  • Blogs
    Feb 27, 2024

    Congress’s Most Recent Effort to Further Expand Short-Term Pell Hurts Vulnerable Students, Jeopardizes PSLF and Other Biden Efforts to Support Struggling Student Loan Borrowers

    The Bipartisan Workforce Pell Act will undercut Public Service Loan Forgiveness and the Biden Administration’s new SAVE Plan.

    More


  • News Clips
    Dec 6, 2023

    Federal Agencies Can Disable Employer Debt TRAPs

    Other advocates involved in the campaign besides GFI include the Student Borrower Protection Center (SBPC), the American Economic Liberties Project (AELP), and the nonprofit law firm Towards Justice, which has represented workers in stay-or-pay cases. The memos name 16 other supporting groups, many of which sent representatives this week to a conference on stay-or-pay contracts in Irvine, California.

    More


  • Press Releases
    Dec 4, 2023

    Experts Release Major Policy Roadmap and Gather at Convening with Enforcement Officials to Examine Risks Posed by TRAPs and Other Employer-Driven Debt

    Compendium of memos outlines broad range of executive actions that federal agencies must take to curb harmful “Stay-or-Pay” employment contracts.

    More


  • Reports
    Dec 4, 2023

    Stay-or-Pay: Federal Actions to End Modern-Day Indentured Servitude Across the Economy

    This new policy roadmap outlines a broad range of executive actions that agencies across the federal government must take to curb so-called “Stay-or-Pay” contracts.

    More


  • Press Releases
    Nov 28, 2023

    Convening on Workers, TRAPs, and the Economy

    This event examined the risks posed by Training Repayment Agreement Provisions (TRAPs) and other employer-driven debt on workers and the economy.

    More


  • News Clips
    Oct 12, 2023

    It’s a TRAP! Labor Board Seeks to Prohibit Use of Training Repayment Agreement Provisions

    More


  • Press Releases
    Jul 20, 2023

    Federal Enforcement Officials Issue Sharp New Warning to Industry: “Workers Face Risks from Employer-Driven Debt”

    Advocates applaud first-of-its-kind CFPB report, warning of risky and unlawful Training Repayment Agreement Provisions (TRAPs).

    More


  • Blogs
    Jul 18, 2023

    With Their Action Against Prehired, the CFPB and Other Several States Took a Huge Step Forward. Now They Should Go Further.

    Last week, the CFPB and 11 states took action against Prehired, a sham “tech sales” bootcamp. Next, law enforcement should take action against Ejudicate (operating as “Brief”), the company that tried to help Prehired silence students by locking them out of court and into lopsided, back-room arbitration.

    More


  • Press Releases
    Jun 14, 2023

    Former PetSmart Groomer Caught in Predatory Training Repayment Agreement Provision (TRAP) Denied Access to Justice, Seeks Leave to Appeal District Court Decision Ending Ground-Breaking Class Action

    By ordering dispute resolved through arbitration, federal judge says PetSmart can use coercive fine print to avoid accountability for TRAP.

    More


  • Press Releases
    May 10, 2023

    First Major Healthcare Company Commits to Stop Using TRAPs to Keep Nurses From Leaving Jobs

    All Workers Must Be Safe from Abusive TRAPs and Made Whole from Past Use May 10, 2023 | WASHINGTON, D.C. — HCA Healthcare, the largest for-profit healthcare system in the United States, announced last night on NBC Nightly News they will no longer rely on Training Repayment Agreement Provisions (TRAPs) to retain their nurses. As […]

    More


  • Letters & Memos
    Apr 21, 2023

    Comments in Response to Proposed Ban on Non-Compete and De Facto Non-Compete Clauses 

    The SBPC submits a comment applauding certain proposed changes aimed at expanding access to the Public Service Loan Forgiveness program and outlining additional needed changes.

    More


  • Press Releases
    Apr 14, 2023

    “Unconscionable” Debt-for-Training Scheme Funnels Low-Wage Tech Workers to Fortune 500 Companies; Groundbreaking Class-Action Lawsuit Seeks to Void Predatory Training Repayment Agreement Provisions

    Tech Training Bootcamp Smoothstack Engineered Modern-Day Indentured Servitude, Using TRAPs to Let Public Companies Like Accenture, Verizon, and CapitalOne Exploit IT Workers April 14, 2023 | WASHINGTON, D.C. — Last night, a former employee filed a class-action lawsuit against a tech-training and employee-staffing agency, Smoothstack, Inc. (Smoothstack). This new lawsuit alleges that Smoothstack steals wages […]

    More


  • Press Releases
    Mar 21, 2023

    Advocates Commend U.S. Labor Department for Taking Action to Protect Workers from Predatory Employer-Driven Debt

    The U.S. Department of Labor filed its first-ever lawsuit against a company for allegedly using a “stay-or-pay” contract that required employees to pay the employer if they leave their job before the end of a contract.

    More


  • News Clips
    Jan 31, 2023

    When This Pilot Quit Her Job, Her Employer Billed Her $20,000

    Fredericks filed her lawsuit with the help of Towards Justice, a legal aid group assisting workers, and the Student Borrower Protection Center, a nonprofit watchdog of the student loan industry. Attorney Mike Pierce, the center’s director, said Ameriflight’s repayment agreement is another illustration of employers trying to foist the cost of workforce training onto workers.

    More

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Workplace Debt & Labor Exploitation
Stay-or-Pays and TRAPs
non-competes
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Racial & Economic Justice

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