About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

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


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.'


What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most