Companies are in desperate need for new talent and consistent revenue.
However, the divide between hiring sprees and the Great Resignation have led some businesses to take an alternative approach to regaining losses from workers who quit.
For instance, licensed esthetician Simran Bal was charged $1,900 for training after she quit a Washington state beauty salon. Despite already having the knowledge needed for the position, Bal’s story has echoed throughout various industries as companies look to meet their end-of-the-year goals.
According to a 2020 survey from the Cornell Research Institute, just 10% of Americans were covered by repayment agreements, also referred to as Training Repayment Agreement Provisions (TRAPs).
The policy has been scrutinized by politicians and professionals alike, with Ohio Senator Sherrod Brown looking into ways to water down the practice in the future.
Although it could be presumed that lower unemployment levels would provide more power to the worker, training agreements continue to be embraced by companies.
“Employers are looking for ways to keep their workers from quitting without raising wages or improving working conditions,” said Jonathan Harris, an associate professor at the Loyola Law School Los Angeles.
Under the Consumer Financial Protection Bureau’s review of these practices, the committee aims to find a method to connect professionals with jobs that are more in line with their background previous experience.
