02/23/2024
Employers are increasingly employing training cost reimbursement agreements to discourage employees from leaving or coerce their behavior after leaving, either in conjunction with or independent of a traditional non-compete or non-solicitation agreement. Training cost reimbursement agreements are coming under increased scrutiny by the U.S. Department of Labor and the National Labor Relations Board, especially when the agreement calls for reimbursement that is unrelated to the actual cost to the employer for the training or are used to chill employee rights to engage in protected activity. Furthermore, the reimbursement amounts are tied to the workweeks when the training occurred: that can result in a minimum wage violation in such workweeks depending on the amount of the reimbursement.
Employers should implement and enforce such agreements with these concerns in mind.