Workers who sign training repayment agreements can owe their employers thousands of dollars if they leave their jobs early. Regulators are starting to crack down on the practice.
The Skin and Cancer Institute was trying to make her repay $38,000 in training costs and more than $100,000 for “loss of business” caused by the company’s inability to transfer Ms. Lakey’s responsibilities to someone new.
Ms. Lakey’s contract stated she would receive $50,000 worth of on-the-job training, a sum she’d be required to pay back on a prorated basis if she quit before 2025.
In July, the Consumer Financial Protection Bureau released the findings of a yearlong study on employer-driven debt, saying it “poses the risk of suppressing wages and forcing workers to stay in jobs they do not want” and that “trainings may have greatly inflated valuations.”
Critics say companies that impose T.R.A.s don’t necessarily plan on recouping training cost and use them as a way to discourage employees from leaving within the first few years of employment.
In 2020, Madison Birch got a job offer in Augusta, Ga., in intraoperative neuromonitoring, a career that involves monitoring patients’ nervous systems in real time during surgery.
Rachel Dempsey, a lawyer for Towards Justice, a nonprofit law firm, said that was different from a practice at PetSmart, which she said had tried to recoup training costs from employees at its in-house grooming academy.
The original article contains 1,706 words, the summary contains 203 words. Saved 88%. I’m a bot and I’m open source!
This is the best summary I could come up with:
The Skin and Cancer Institute was trying to make her repay $38,000 in training costs and more than $100,000 for “loss of business” caused by the company’s inability to transfer Ms. Lakey’s responsibilities to someone new.
Ms. Lakey’s contract stated she would receive $50,000 worth of on-the-job training, a sum she’d be required to pay back on a prorated basis if she quit before 2025.
In July, the Consumer Financial Protection Bureau released the findings of a yearlong study on employer-driven debt, saying it “poses the risk of suppressing wages and forcing workers to stay in jobs they do not want” and that “trainings may have greatly inflated valuations.”
Critics say companies that impose T.R.A.s don’t necessarily plan on recouping training cost and use them as a way to discourage employees from leaving within the first few years of employment.
In 2020, Madison Birch got a job offer in Augusta, Ga., in intraoperative neuromonitoring, a career that involves monitoring patients’ nervous systems in real time during surgery.
Rachel Dempsey, a lawyer for Towards Justice, a nonprofit law firm, said that was different from a practice at PetSmart, which she said had tried to recoup training costs from employees at its in-house grooming academy.
The original article contains 1,706 words, the summary contains 203 words. Saved 88%. I’m a bot and I’m open source!