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Quitting a bad job is no longer free. For a growing number of workers, the privilege of resigning now comes with a five-figure price tag.
The mechanism is not hidden; it is explicit. Standard employment contracts now frequently assign a specific dollar value to your orientation and mentorship. The paperwork labels this as “Training Value” or “Education Investment.” It frames the cost as a benefit the company is providing to you.
But in practice, that clause turns your employment into a debt trap. If you leave before the company decides you have “paid off” your training, typically 12 to 24 months, you don’t just lose a paycheck. You owe them money.
The Fine Print That Owns You
These are called Training Repayment Agreement Provisions (TRAPs), but in 2026, they are better known simply as “stay-or-pay” clauses.
They work like a reverse signing bonus. Instead of giving you money to join, the company calculates a cost for your presence. They monetize the hours a senior employee spent showing you the ropes.
If you leave early, they send a bill.
Crucially, this is not a loan. You never saw this money. You didn’t spend it. It is a debt manufactured by your employer to keep you in a seat you otherwise would have vacated.
Why This Is Happening Now
A few years ago, it looked like these clauses were dead. Federal regulators were circling, calling them “de facto non-competes” that trapped workers in substandard jobs.
But the winds shifted. By early 2026, the federal crackdown on these agreements was effectively rolled back. The National Labor Relations Board (NLRB) and the Federal Trade Commission (FTC) have seen their aggressive bans stalled or rescinded.
That leaves a chaotic reality: Your zip code now determines your freedom.
If you work in California or New York, new state laws that kicked in late 2025 likely protect you. In those states, asking a worker to pay for mandatory training is now heavily restricted or unenforceable in many cases.
But if you are in most other states? You are on your own. With federal pressure off, companies in unregulated states are doubling down on stay-or-pay clauses to stop turnover without raising wages.
The Industries Where You’re Most at Risk
You might think this only applies to high-level executives, but the data says otherwise. TRAPs aggressively target entry-to-mid-level workers in high-turnover industries.
- Nursing & Healthcare: Hospitals frequently tag a $10,000–$15,000 price on “residency programs” for new grads.
- Trucking: Drivers often face bills for CDL training that far exceed the market rate if they switch carriers.
- Aviation: Junior pilots are routinely hit with $20,000+ training bonds to prevent them from jumping to major airlines.
- Tech & Sales: “Bootcamp” style roles often require you to pay back the cost of your initial sales training if you quit in under a year.
The Economics of “Liquidated Damages”
Legally, companies frame this as “liquidated damages.” They argue that your departure causes them a specific financial loss that you agreed to cover.
The problem? The numbers often feel pulled from thin air.
Does it really cost $12,000 to have a senior employee shadow you for two weeks? Probably not. But if you signed a contract agreeing that it does, fighting it in court requires a lawyer you probably can’t afford.
What Happens When You Refuse to Pay
If you quit and refuse to pay, the company has options.
They can withhold your final paycheck (though this is illegal in many states, they often do it anyway and dare you to sue). They can send the debt to a collection agency, tanking your credit score. Or, they can sue you directly.
Even if they don’t sue, the threat is usually enough. Most workers stay in unhappy, unsafe, or underpaid roles simply because they cannot write the check to leave.
Read Before You Sign
The landscape in February 2026 is messy. Do not assume the government has banned these.
Before you accept a new role, search the document for “repayment,” “reimbursement,” or “training costs.” If you see a dollar figure attached to your resignation, ask specifically what it covers and if it’s prorated.
If the answer is vague, proceed with extreme caution. That job offer might not be a career step. It might be a bill waiting to happen.
The most effective part of these contracts is rarely the lawsuit itself; it is the silence that comes before it. Most workers will not risk their credit score or a court battle to challenge a questionable debt. They simply stay. They endure the burnout, accept the understaffing, and wait out the clock. That is exactly what the company bought. The price tag on your training wasn’t an investment in your skills. It was an investment in your hesitation.
Sarah Johnson is an education policy researcher and student-aid specialist who writes clear, practical guides on financial assistance programs, grants, and career opportunities. She focuses on simplifying complex information for parents, students, and families.
