The New Noncompete: The Training Repayment Agreement Provision (TRAP) as a Scheme to Retain Workers through Debt
Northwestern University Law Review Of Note, Nov. 9, 2022
Loyola Law School, Los Angeles Legal Studies Research Paper No. 2022-15
3 Pages Posted: 10 Nov 2022 Last revised: 11 Nov 2022
Date Written: November 9, 2022
Abstract
A growing number of employers are attempting to restrict worker mobility through Training Repayment Agreement Provisions (TRAPs) in addition to--or instead of--traditional noncompete agreements. Under TRAPs, a worker must pay to quit, purportedly for the cost of training. But many workers under TRAPs report that the training is often not useful for their skills development. This piece proposes that, by offering debt-inducing services like training to workers via TRAPs, employers have become creditors and could be liable for predatory terms not only under employment laws but also consumer laws.
Keywords: contract law, consumer law, employment law, labor law, training, personnel economics, economic perspectives, legal theory
JEL Classification: J00, J2, J3, J4,J5, J6, M5
Suggested Citation: Suggested Citation