Business Description
The lawsuit against Smoothstack Inc., a Virginia-based IT staffing agency, has raised significant concerns about the company’s employment practices, particularly regarding its use of Training Repayment Agreement Provisions (TRAPs). These agreements required employees to work 4,000 hours (about two years) or face steep financial penalties, reportedly up to $30,000, for early departure. The lawsuit alleges that such practices amount to modern-day indentured servitude, where employees are trapped by contracts and face significant financial harm if they leave before fulfilling their obligations. This has led to accusations of wage theft, unpaid overtime, and retaliatory behavior toward employees who raised concerns about their treatment.
