Minnesota Attorney General Keith Ellison announced today that his office has reached settlement agreements with Southern Escape Ventures Incorporated (“Southern Escape Ventures”) and HW Holdings Cooperative Inc. (“HW Holdings”) over the companies’ use of training repayment agreement provisions, also known as TRAPs, that required employees to pay the alleged costs of on-the-job training if an employee quit or was fired within one year.
“Training repayment agreements can trap workers in their jobs and prevent them from pursuing better employment opportunities elsewhere, including jobs with higher wages and better working conditions,” Attorney General Ellison said. “Workers should not have to pay for on-the-job training that an employer requires for the company’s benefit. I am pleased that Southern Escape Ventures and HW Holdings changed their practices and that my Office was able to secure full restitution for employees.”