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Avoiding the Legal Snare: The Perils of Training Repayment Agreement Provisions (TRAPs)

 

Employers are increasingly using Training Repayment Agreement Provisions (TRAPs) to replace other restrictive covenants such as noncompetes and nonsoliciation agreements. But TRAPs can be even more restrictive—and more exploitative—than noncompetes.  In this article, we’ll explain what a TRAP is and how to avoid getting caught in one.

What is a TRAP?

TRAPs, also known as Training Repayment Agreement Provisions, are contractual terms that employees sign when they are hired. While the wording may vary, a TRAP requires an employee to work for a certain period of time. If the employee separates from service prior to that timeframe (whether they quit or are fired), the employee has to pay back the employer’s training costs, the costs of buying or renting equipment, or the costs of replacing the employee.  Sometimes those fees are prorated depending on how long the employee has worked.

How TRAPs Hurt Employees

TRAPs can be very misleading. Often they don’t state how much the employee will have to pay back, or they don’t disclose interest accrual rates or other information a person would usually be entitled to when entering an agreement that might affect their credit. Sometimes the “training” that an employee is expected to pay for is just the orientation or legally-required videos. Sometimes the fees for such “training” are outrageous – we’ve seen TRAP fees ranging anywhere from $5,000 to $50,000. Some TRAPs accrue interest so fast there is no way an employee will ever repay it. And TRAPs usually don’t provide any exceptions in situations where, the employee quits for reasons beyond their control – like sexual harassment, disability, or lousy working conditions.

A TRAP can reduce an employee’s pay below minimum wage. It can destroy an employee’s credit. Worse, employers use TRAPs as a threat: don’t leave this job or we’ll sue you, destroy your credit, report you to immigration, and make it so you can never find another job. There’s a word for this, and it was outlawed by the 13th Amendment to the United States Constitution. 😡 😡 😡

How To Spot A TRAP

TRAPs are often hidden in piles of onboarding paperwork, so employees might not even realize they’ve signed one. They are commonly used in nursing, trucking, and service industries, but we’ve also seen them in child care and professional contexts.

The only way to know if your employer is trying to get you to sign a TRAP is to read everything before signing. This can be difficult. People get trapped into TRAPs because they are so desperate for a job that they’ll sign anything. But that’s the trap. Employers may be counting on you to sign because you just need the money, and they may pressure you to sign by acting like the job won’t be there if you take your time.

What To Do When You See A TRAP

GET LEGAL ADVICE. TRAPs are illegal in some, but by no means all, jurisdictions—there’s no way to know without consulting an employment law attorney in your area. Legal or not, if someone is pressuring you to sign a document without having an attorney review it, that’s a sign you probably shouldn’t be signing the document. No job is worth your freedom.

Dressing for Success: Workplace Dress Codes, Grooming Standards, and Your Rights

 

Employers may establish dress codes or grooming standards to create a particular image or comply with safety requirements. These workplace rules may require uniforms or simply require a particular type of attire. Companies generally have the authority create these rules, as long as they apply them equally. As long as the dress code does not stifle Union activity, treat certain groups less favorably, or interfere with a reasonable accommodation, then the dress code wins. But there are some exceptions.

1. Union Clothing

Union-related clothing is a great way to show solidarity with your coworkers. In general, an employer can’t just say “don’t wear Union paraphernalia.” But they can prohibit buttons and pins of any type, or make rules about safety, or say that their dress code prohibits wearing t-shirts. The rules on this issue flip-flop approximately every four years, so talk to your Union rep or a workplace lawyer if you are getting called out for wearing that “Respect Our Contract” button.

2. Discrimination

Although employers have the right to implement dress codes, they must do so in accordance with anti-discrimination laws. Any dress code policy that disproportionately impacts certain protected groups may be deemed discriminatory:

A. Gender

The EEOC has concluded that a dress code that requires only women to wear uniforms probably violates Title VII. Historically, dress codes requiring roughly equivalent standards for male and female employees were considered nondiscriminatory if they were enforced equally (for example, neckties for men, skirts for women). But the Supreme Court’s decision in Bostock v. Clayton County has moved the needle, affirming that Title VII prohibits employers from discriminating on the basis of gender identity or sexual orientation.  Under Bostock, dress codes and grooming standards may be discriminatory if they are based on outdated sexual stereotypes.

B. Race

Grooming standards that are harsher on one group than another may be discriminatory. For example, if white men are allowed to wear long sideburns and facial hair but Black men are not allowed to wear afros, the grooming policy may be discriminatory. Many states (including New York) have implemented legislation to prevent discrimination on the basis of hair textures and hair styles that protect hair from damage.

Likewise, if shaving causes you skin problems, you may be able to get a reasonable accommodation allowing you to deviate from an employer’s “clean shaven” policy – but you’ll probably have to ask for it.

C. Reasonable Accommodations for Religious or Disability-related Considerations

If a dress code conflicts with an employee’s religious practices or medical condition, the employee may request an accommodation. The employer is then required to modify the dress code unless to do so would result in an undue hardship.  Caution:  If you don’t request an accommodation, the employer isn’t going to just hand one out.  Also, the employer doesn’t have to provide the accommodation requested, just one that doesn’t cost them too much money.

In case you’re wondering, a dress code that allows pregnant workers to wear maternity clothes does not violate Title VII as long as other employees with medical conditions are allowed to deviate from the dress code as needed.

D. National Origin:

In general, a dress code does not have to be modified to adhere to a person’s national identity. But a dress code that prohibits some kinds of national attire but not others may be discriminatory. For example, if brightly colored clothing is allowed but an employee gets into trouble for wearing Kente cloth, that could be discriminatory.

Conclusion:

This is a rapidly-changing area, so it’s important to get advice from legal professionals or government agencies when it seems like a dress code is cramping your style. Always speak with a qualified workplace attorney in your geographical area to determine whether you have legal protections against your employer’s dress code!

EEOC Update Regarding Workplace Harassment

 

 

 

For the first time in 24 years, the EEOC has updated its guidance on Workplace Harassment.  The guidance, which issued on April 29, 2024, provides new clarifications on duties to protect LGBTQIA+ workers, handling virtual harassment, and newly beefed-up protections against harassment based on pregnancy and religious expression.

In 2020, in Bostock v. Clayton County, the US Supreme Court concluded that Title IX prohibitions against gender discrimination include protections against discrimination on the basis of a worker’s sexual orientation or gender identity. The new guidance clarifies that this also means protections against harassment. New examples of illegal harassment include, among other things, intentionally and repeatedly using the wrong pronouns or name, “outing” a person without their consent, requiring an employee to wear clothes inconsistent with their gender identity, and denying use of a particular bathroom based on gender.

Harassment on the basis of pregnancy is also gender discrimination, and includes denial of reasonable lactation time, giving someone a hard time about contraception or abortion, or being nasty to or about a person because they are pregnant.

Employers have always been required to accommodate sincerely-held religious beliefs; the updated guidance clarifies that some amount of coworker proselytizing is acceptable, but if an employee asks not to be part of the discussion, a failure to honor that request is harassment.

The new guidance also specifies that harassment that occurs via email, social media, chat, videoconference, or other online technology is still harassment.

About 20 states’ AGs have sued to enjoin the guidance, mostly because they are freaking out about the gender identity protections. So far the guidance remains in effect…but stay tuned.

Wondering if this is still a thing? By the time you read this blog post, the whole landscape may have changed. So always, always, always talk to a workplace lawyer in your jurisdiction to determine what applies to your particular situation.

Happy Juneteenth!

     

On June 19, 1865, enforcement of the Emancipation Proclamation reached Galveston, Texas. Union troops posted General Order 3 in various places around town, such as the Customs House and the AME Church. Most enslaved people were aware of the Emancipation Proclamation, but they were still in held in bondage until the Union had enough military presence in Texas to force slave owners to comply. Many first heard the words of General Order 3 from the mouths of their enslavers.

The order includes inspiring language:

“The people of Texas are informed that, in accordance with a proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of personal rights and rights of property between former masters and slaves, and the connection heretofore existing between them becomes that between employer and hired labor.”

But even General Order 3 didn’t deliver on the promise of freedom. In addition to the above quote, it included language ordering freed people to stay put and work for wages for their former enslavers. Nor was every enslaved person automatically emancipated on June 19. It took the passage of the 13th Amendment on December 6, 1865 to completely abolish slavery in the border states of Delaware and Kentucky.

Nevertheless, Juneteenth is a good time to reflect on our history, celebrate freedom, and recommit to “absolute equality of personal rights and rights of property.”

Wishing you a safe, cool, and free Juneteenth!

Pregnant Workers Fairness Act UPDATE

The EEOC has issued final rules clarifying how the Pregnant Workers Fairness Act (“PWFA”) is implemented. Those rules go into effect on June 18, 2024. These regulations clarify the availability of accommodations for limitations arising out of pregnancy, childbirth, and associated conditions.  

Employers don’t have to grant every accommodation request, just those accommodations that are “reasonable.” Without getting into a long discussion of how “reasonableness” is determined by legal decisionmakers, suffice it to say that accommodation requests often get watered down or negotiated out of existence.  These guidelines help set a baseline.

Predictable Assessments: The new rules are exciting because they propose four accommodations that are presumed reasonable—meaning that, if the employer wants to deny them, the employer has to prove that they aren’t reasonable. Those accommodations are: 1) keeping water nearby and breaks for drinking (for example, having a water bottle); 2) additional restroom breaks; 3) allowing standing, sitting, and alternating positions; and 4) allowing additional eating/drinking breaks. These accommodations are called “predictable assessments.”  

 

Limits on seeking additional documentation: Employers should not be seeking additional documentation in the following circumstances:  1) The need to adjust the workplace is obvious (for example, needing a larger uniform); 2) The employee has already provided sufficient information; 3) The employee is requesting one of the predictable assessments; 4) The employee requests time to pump or nurse; or 5) Non-pregnant or nursing employees would not be required to provide documentation for the same accommodation. 

 

New York Workers: Meanwhile, New York Pregnancy protections are gearing up. On June 19, 2024, New York employees will be entitled to a paid[1] 30-minute lactation break “each time such employee has reasonable need to express breast milk for up to three years following child birth.” While some employers are already wringing their hands about how often the need to pump might be “reasonable,” there is similar language in the FLSA (“a reasonable break time…each time such employee has need to express milk…”) 29 U.S.C. §218d (a)(1). Additionally, under New York’s Paid Prenatal Leave, on January 1, 2025, pregnant New York workers will be entitled to 20 hours of paid prenatal leave per calendar year, at the regular rate of pay, to be used to attend prenatal doctor’s appointments. This leave is in addition to New York statutory paid sick leave.  

 

Always contact a reputable workplace rights attorney to understand how new developments affect your rights! 

 

[1] This beats out the Federal PUMP Act, which only requires unpaid leave, unless the employee is not completely relieved from duty during the pump break.

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