Beware the Contract Clause Loading US Workers With Debt

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Beware the Contract Clause Loading US Workers With Debt
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Nurses, retail workers, and other employees can owe thousands of dollars just for quitting their job—or getting laid off.

The bite of a TRAP can be particularly painful when a worker has been led to believe that it won’t be used. Scally could not afford to pay her debt to PetSmart but claims her manager said that as long as she worked at the company long enough for it to recoup the $5,500, it likely wouldn’t enforce the agreement. She stayed until September 2021, when she calculated she had made PetSmart its money back.

Adrian Valdes, formerly a dog bather at PetSmart, describes a similar ordeal. They enrolled in the Grooming Academy program in 2020 because it was their only path to receiving health insurance and guaranteed hours. But three months after completing the training, they found a dog bather job at another company with better pay and health insurance.

Chris Hicks, a senior policy advisrr at SBPC and coauthor of its report, says that Scally’s and Valdes’ ordeals are not unusual: Most workers the authors spoke to didn’t know if their TRAP was going to be enforced. “They'd say, ‘Some of my former coworkers left and weren't sued. So I think I can leave.’ But then they would see it enforced.

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