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Sunday, May 3, 2026

Bill would outlaw making some lower-wage workers pay cost of training - Newsday

ALBANY — Some employers are requiring new hires making low wages to commit to paying thousands of dollars for their training, which researchers and advocates say can trap workers in jobs in a new twist on indentured servitude.

The practice that employers call training reimbursement agreements has long been used in law, finance and science, and for airline pilots, engineers and other high-paying fields. But it has become more common in retail, food service, trucking and some other fields within the last five years, according to state and national researchers.

These agreements can saddle an employee with debt even if the worker quits or is fired before a set period of months or years.

For employers, the agreements are a way to pay for training and to keep trained employees from quitting and using the skills for a competitor. The agreements also can reduce turnover in an economy with low unemployment rates. The practice gained traction after the wave of resignations during and after the COVID-19 pandemic, which prompted many workers to seek better jobs or drop out of the workforce.

WHAT TO KNOW

  • Some employers are requiring new hires making low wages to commit to paying thousands of dollars for their training, which researchers and advocates say traps workers in jobs in a new twist on indentured servitude.
  • A bill in New York would outlaw that practice. The bill is active for the current legislation session scheduled to end Thursday.
  • Employers see the agreements as a way...


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