Education Agreements Can Aid Employers Hiring Inexperienced Workers

Employers are getting desperate to find employees, so much so that they are foregoing some of the requirements that they used to have for positions. In some cases, instead of seeking applicants with past experience, employers are training new hires.

When an employer needs an employee with certain skills, it may send that employee to school or through a certification program to obtain those skills. But can the employer be sure that it will get a return on that investment? More and more, employers are utilizing education repayment agreements to ensure they are not left holding the bag.

An education repayment agreement essentially provides the employee with a forgivable loan for the schooling. The loan is then forgiven over time if the employee remains with the company – normally becoming fully forgiven within two years. The agreement may provide for pro-rated amounts of the loan to be forgiven at certain benchmarks, e.g., 25% forgiven every six months of employment.

As employers hire more people that need training, education repayment agreements are an important tool they should keep in mind to ensure they receive a return on their investment. If you would like more information on these kinds of agreements or any other labor and employment law needs, please contact Jeffrey Stewart (, 610.782.4904) or any other member of our Labor and Employment Group.