Licensed esthetician Simran Bal, who was taken to court by her former employer to repay $1900 in trainings they required her to attend, displays a copy of the employee training and reimbursement agreement from Oh Sweet, LLC outside King County District Court in Shoreline, Washington, U.S., October 13, 2022. - REUTERSPIX: When a Washington state beauty salon charged Simran Bal $1,900 for training after she quit, she was shocked.
The practice, which critics call Training Repayment Agreement Provisions, or TRAPs, is drawing scrutiny from U.S. regulators and lawmakers. The Consumer Financial Protection Bureau has begun reviewing the practice, while the Justice Department and Federal Trade Commission have received complaints about it.
“We have heard from workers and worker organizations that the products may be restricting worker mobility,“ the official said. But she soon found that before she could provide services for clients, and earn more, she was required to attend trainings on such things as sugaring to remove unwanted hair and lash and brow maintenance.
In comments to the CFPB, National Nurses United said they did a survey that found that the agreements are “increasingly ubiquitous in the health care sector,“ with new nurses often affected.