How is this legal? It’s modern day indentured servitude.
Had to deal with a contract like this too. If you’re in the US or London, watch out for FDM Group. When I was there, if you stay for longer than 2 weeks in their training, their contract requires you to pay 20k.
This is almost certainly not enforceable, but that’s either litigation or a hit to your credit.
They scoop up folks (like myself) who have trouble getting a software dev job, and then send you of too various parts of the US to work for pennies with a client. I can allow that the cheap contract labor might be necessary for high risk hires, but that fee-intimidation-tactic is fucked.
(I actually would quibble about whether it’s necessary/moral for “high risk hires”, but I’m not interested in having that conversation with people right now…)
This is the best summary I could come up with:
The Skin and Cancer Institute was trying to make her repay $38,000 in training costs and more than $100,000 for “loss of business” caused by the company’s inability to transfer Ms. Lakey’s responsibilities to someone new.
Ms. Lakey’s contract stated she would receive $50,000 worth of on-the-job training, a sum she’d be required to pay back on a prorated basis if she quit before 2025.
In July, the Consumer Financial Protection Bureau released the findings of a yearlong study on employer-driven debt, saying it “poses the risk of suppressing wages and forcing workers to stay in jobs they do not want” and that “trainings may have greatly inflated valuations.”
Critics say companies that impose T.R.A.s don’t necessarily plan on recouping training cost and use them as a way to discourage employees from leaving within the first few years of employment.
In 2020, Madison Birch got a job offer in Augusta, Ga., in intraoperative neuromonitoring, a career that involves monitoring patients’ nervous systems in real time during surgery.
Rachel Dempsey, a lawyer for Towards Justice, a nonprofit law firm, said that was different from a practice at PetSmart, which she said had tried to recoup training costs from employees at its in-house grooming academy.
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