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59 Lab. L.J. 213 (2008)
Employee Agreements for Repayment of Training Costs: The Emerging Case Law

handle is hein.journals/labljo59 and id is 213 raw text is: EMPLOYEE AGREEMENTS FOR REPAYMENT OF TRAINING COSTS: THE EMERGING CASE LAW By ANTHONY Kimus Anthony W Kraus is a graduate of the Cornell Law School and has been practic- ing labor and employment law since 1976. He is a principal in the firm of Miles & Stockbridge in Baltimore, Maryland Agreements requiring employees to repay training costs to their employers, if they separate from employment before a specified period, have become increasingly familiar in the American work- place. This practice was first addressed in this journal over fifteen years ago, together with a prediction of potential legal challenges that were expected to arise in attempts to enforce such agreements.' At the time, such arrangements were relatively new and there was scant case law discussing them. Since then, such agreements have become common- place in the public sector. In 2004, Congress enacted legislation specifically requiring so-called continued service agreements from government employees who receive extended training. Such contracts obligate the employees to work for at least three times the training period or face suit for recovery of the training costs.2 Similar agreements are also widely used by state and local government for police and other highly trained personnel. In 2006, the City of Los Angeles made headlines by filing suit seeking to recover 1.6 million dollars in training costs from 53 officers who had agreed to repay them if they left the police department before completing a five-year service commitment.3 In the private sector, reliance upon such agreements also has expanded. Such agreements continue to be widely used by airlines4 and securities brokers,' whose training costs can be quite high, and also in other in- dustries, such as accounting6, information technology,' and trucking.' 213

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