Highlights

Employee training repayment agreements (TRAs) have seen increased scrutiny under state law.

Colorado, among other states, have implemented restrictions on TRA terms and have shown that states will not shy away from enforcement actions in light of potential violations.

Employers are still permitted to utilize TRAs under certain circumstances but should consult with legal counsel to ensure compliance with state law.

Training repayment agreements (TRAs), also known as training repayment agreement provisions (TRAPs) or "stay or pay" provisions, have made headlines recently, thanks to lawsuits from Colorado's attorney general and at least one large multistate settlement.

What Is a TRAP?

TRAPs are provisions included in employment agreements that require employees to repay a spe

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