ARTICLE
9 October 2026

Littler Lounge: Caught In A TRAP? Navigating The New Laws On Stay-or-Pay Agreements (Podcast)

State legislatures across the country are increasingly scrutinizing training repayment agreement provisions (TRAPs) and other "stay-or-pay" arrangements that employers use to encourage employee retention.
United States California Employment and HR

Few things bring together wage and hour law, noncompetes, consumer protection statutes, and state legislatures quite like a TRAP. In this episode, Nicole LeFave and Claire Deason welcome Rob Pritchard, co-chair of Littler’s Wage and Hour practice group, to break down the growing wave of laws targeting training repayment agreement provisions, or TRAPs, and other "stay-or-pay" arrangements designed to encourage employees to stick around.

From California to New York to Washington state, the conversation explores why these agreements have caught lawmakers' attention, how well-intentioned retention strategies can become compliance challenges, and why employers are discovering that a potential retention tool can look very different depending on the state. One thing is clear: the rules are changing quickly. And when the topic is TRAPs, the last place anyone wants to end up is caught in one.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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