Training Repayment Agreements: Challenging a TRAP Demand
A training repayment agreement provision requires an employee to repay claimed training costs if they leave before a set date. Many are unenforceable because the stated amount bears no relation to actual cost, the training was generic onboarding, or the clause is not prorated.
The cost figure is usually the weak point
These agreements typically state a fixed sum. That figure is rarely tied to documented expenditure, and often includes the employee wages during training, which is the employer cost of having a new employee rather than a training expense.
Requiring an employee to repay their own wages is a difficult position to defend, and it is the argument that most often resolves these disputes.
Generic versus transferable training
Courts distinguish between training that primarily benefits the employer and training that gives the employee something portable.
A transferable certification the employee keeps looks like an investment in the individual. Learning the employer internal systems and procedures does not, and calling it training does not change what it was.
Where these clauses appear
Certain sectors use them heavily, usually where onboarding is lengthy or licensing is involved.
- Nursing and allied health, particularly new graduate residency programs
- Aviation, for type ratings and initial pilot training
- Commercial trucking, for CDL training programs
- Financial services, for licensing and registration costs
- Technology, for vendor certifications
What to do with a demand
Ask for the documented cost. Many demands do not survive that request, because the employer cannot substantiate the number in the agreement with actual expenditure.
Keep the agreement, the demand, and any record of what the training actually consisted of. If the amount was deducted from final pay, that raises a separate state wage law question.
Frequently asked questions
Can they charge me for my own wages during training?
Employers try, and it is one of the weakest positions in these disputes. Wages paid to an employee for time worked are ordinarily an employer cost rather than a recoverable training expense.
I am a nurse in a residency program. Does this apply?
New graduate nurse residency programs are among the most common settings for these clauses. Whether the program was genuine specialized training or extended orientation is usually the central question.
Does it matter that I was fired?
Frequently yes. Many clauses are triggered only by voluntary departure, and one triggered by involuntary termination faces additional enforceability problems.
The attorneys who handle these cases
Related reading
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