If some scumbag company is trying to squeeze employees for training costs, you really think they'll pay tens of thousands for a lawyer to sue over this?
It's empty threats.
If some scumbag company is trying to squeeze employees for training costs, you really think they'll pay tens of thousands for a lawyer to sue over this?
It's empty threats.
" Although critics question the legality of TRAPs, a legal analysis published last year found that courts generally uphold the agreements in challenges brought under anti-kickback provisions of the Fair Labor Standards Act, the law establishing a federal minimum wage. However, the author of the study, Loyola Marymount associate law professor Jonathan F. Harris, said another type of legal challenge might prove more successful: courts could refuse to enforce TRAP contract language under the so-called unconscionability doctrine, a legal principle that allows judges to void agreements containing unreasonable terms dictated by a party “with superior bargaining power.” In 2000, the study noted, a federal judge in Manhattan nullified one employment agreement in the financial services industry, ruling that the language of the contract “approaches indentured servitude.” "
Additionally, it does not cost tend of thousands of dollars to have a law firm draft demand letters for debt. Even if the debt is contestable, theoretically, it remains a huge problem and not something that can be ignored.
These employers don't want to go to court, they don't want to collect the debt, they just like scary language.
My employer threatened me with similar language, so I shrugged my shoulders and said "ok?".
Never heard of it again. They won't spend $20 to buy pizza for their employees, you think they'll spend money on lawyers?