New state laws are reshaping whether and how employers can recoup signing bonuses, relocation costs, training investments, and similar employee retention incentives.
Employers that require departing employees to repay signing bonuses, relocation assistance, immigration costs, training or educational costs, or other retention incentives should revisit those arrangements now.
What Are TRAP Provisions?
A training repayment agreement provision (TRAP), employment promissory note, or stay-or-pay clause requires an employee to reimburse the employer for costs such as signing bonuses, relocation, or tuition if the employee leaves before a specified period. Employers use these provisions to protect their investment in new hires; critics say they trap workers in their jobs.
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