Trapped at Work? What to Know About Employee Repayment Agreements in DC, VA, and MD

March 2, 2026

• What Are Training Repayment Agreements (TRAPs)?

• Are TRAPs Legal? The Changing Landscape

• TRAP Laws in DC, Maryland, and Virginia

• What Should You Do if You Signed a TRAP?

A recent trend has seen employers using contracts to lock employees into their jobs. In December 2025, New York enacted the “Trapped at Work Act,” a landmark law that limits these controversial agreements. While New York has taken a stand, what does this mean for workers in Washington, D.C., Maryland, and Virginia?

These contracts, often called Training Repayment Agreement Provisions (TRAPs), require an employee to repay the company for training costs if they leave their job before a certain date. While they sound reasonable on the surface, many are used to punish employees for leaving rather than to recoup legitimate training expenses.

What Are Training Repayment Agreements (TRAPs)?

A TRAP, also known as a “stay-or-pay” provision, is a clause in an employment contract that requires an employee to pay the employer a sum of money if they resign within a specified period. Employers often claim this money is to reimburse them for the cost of training the employee.

However, these agreements are increasingly scrutinized. The training provided is often company-specific and has little value to another employer. In these cases, the TRAP acts less like a fair repayment plan and more like a penalty that traps an employee in their job.

Are TRAPs Legal? The Changing Landscape

Regulators and courts are beginning to push back against TRAPs. New York recently passed the “Trapped at Work Act,” which makes most of these agreements unenforceable. The law prohibits employers from requiring workers to pay for leaving a job, with narrow exceptions for certain voluntary, transferable credentials and some bonuses.

This follows a growing trend of legal challenges. The Washington, D.C. Attorney General has successfully sued employers for using TRAPs, arguing they are anticompetitive and violate the District’s ban on non-compete agreements.

TRAP Laws in DC, Maryland, and Virginia

Unlike New York, the DMV area does not have a clear, unified law banning TRAPs. The legal landscape varies by jurisdiction.

Jurisdiction	Status of TRAP Laws
Washington, D.C.	No specific ban, but the Attorney General has successfully challenged TRAPs as illegal non-compete agreements and violations of antitrust law. This provides a strong basis for employees to fight back.
Maryland	A bill (HB0203) was introduced in 2026 to prohibit TRAPs and declare them void against public policy. However, this bill has not yet passed into law, meaning TRAPs are still currently judged on a case-by-case basis.
Virginia	There are no specific laws banning TRAPs. Their enforceability is determined by courts and depends heavily on the specific facts of the case. Courts may consider if the agreement is reasonable or if it functions as an illegal non-compete.

What This Means for Employees

If you are an employee in DC, Maryland, or Virginia, you should not assume a TRAP in your contract is automatically enforceable. These agreements can often be challenged in court, especially if:

•The “Training” Has No Real-World Value: If the training was specific to the company’s internal processes and does not provide you with a transferable skill or credential, a court may find the repayment demand unreasonable.

•The Cost is Punitive: The repayment amount should be related to the actual cost of the training. Inflated costs that serve only to penalize you for leaving are less likely to be enforced.

•It Functions as a Non-Compete: In DC and Maryland, non-compete agreements are banned for most low and middle-wage employees. If a TRAP is so expensive that it effectively prevents you from taking another job, it may be considered an illegal non-compete agreement.

What Should You Do if You Signed a TRAP?

If you have signed an employment agreement with a TRAP and are considering leaving your job, do not let the agreement intimidate you. There are steps you can take to protect yourself:

1.Review the Agreement Carefully: Look at the specific terms. What is the repayment amount? What does the contract say the training was for?

2.Gather Documentation: Collect any materials related to the training, your job duties, and the contract itself.

3.Do Not Assume it is Enforceable: Many of these agreements are legally questionable, particularly in the DMV area.

4.Consult an Employment Attorney: Before you resign or make any payments, speak with an experienced employment lawyer. They can assess the legality of your specific agreement and advise you on the best course of action.

Contact an Employment Lawyer

Being stuck in a job because of a threatening repayment agreement can feel overwhelming. If you are facing a TRAP, you have rights. Contact us today to discuss your case with an experienced employment attorney who can help you understand your options.