Groups Push FTC to Ban TRAP contracts
CFA joined a group of 20 organizations highlighting new research on the growing use of Training Repayment Agreement Provisions (TRAPs) for the FTC to consider in connection with this proposed ban on non-competes in labor contracts. The research shows a rise in survey respondents indicating they have worked under a TRAP, from 4.1 percent in 2014 to 8.7 percent in 2020, that TRAPs are more common for younger workers, more educated workers appear more likely to enter TRAPs, and the use of TRAPs is uneven in labor markets, with certain industries appearing to commonly rely on TRAPs with these workers, while other industries rely on other means to retain workers.
