Colorado Attorney General Phil Weiser reached a $225,000 settlement with PetSmart in November 2025 over allegations that the company used its free Grooming Academy as a trap by luring employees with the promise of free training and then threatening them with thousands of dollars in reimbursement costs if they left early.
The case centers on what consumer advocates call TRAPs – Training Repayment Agreement Provisions – a practice that critics say turns employer training programs into a form of pay control. PetSmart’s Grooming Academy was advertised as free. According to the complaint from Colorado AGWhat the employees were not told in advance was that the training actually cost $5,000 or $5,500, and that they would have to pay that amount back to PetSmart if they left before completing a multi-year obligation.
How the trap worked
PetSmart’s Grooming Academy training had a catch hidden in the contract. Employees who signed up were told the training was free. The actual arrangement:
- The training actually cost $5,000 or $5,500
- Employees were due the full amount back if they left within a certain period
- Staying for a year forgave half the cost; For a stay of two years, the entire amount was waived
- Employees who left before that two-year-plus period were billed — and some were sent to collections
The Colorado AG filed suit in July 2025. PetSmart agreed to a settlement in November 2025. The company denies liability or wrongdoing.
Who gets paid and how much
More than 60 former PetSmart Colorado employees are eligible for payments. The settlement uses a three-tiered structure based on what each employee experienced:
$5,000Employees who stayed longer because of the TRAP agreement
$2,100Employees who left before 2 years and 3 months
Checks are distributed by mail. Employees do not need to file a claim; the AG’s office will identify and contact eligible former employees directly.
What affected employees need to know
- Look for a check in the mail from the office of Colorado AG
- Cash or deposit within 90 days — checks that expire become void
- The AG’s office will NOT contact you for personal financial information — any contact that asks for your social security number, date of birth or bank account information is fraud
- To ask? Call (720) 508-6890
Why this matter matters beyond PetSmart
TRAPs are not unique to PetSmart. Training reimbursement agreements have become increasingly common in the retail, foodservice and service industries. Employees sign them without fully understanding that “free” training comes with terms and conditions that could cost them thousands if they leave for any reason – including a better job, a family emergency or a workplace problem.
As part of the settlement, PetSmart agreed to:
- Going forward, comply with Colorado law on education reimbursement agreements
- Notify affected employees that they are released from TRAP obligations
- Terminate collection activities against employees covered by the settlement
If you are facing a debt that you believe you owe to your employer for training, or if a former employer is threatening to collect training costs from you, you may want to consider contacting your attorney general’s consumer protection office. Several states have taken steps in recent years to restrict or ban TRAPs.
You can also use my free Find Your Path tool if your employer’s debt situation is causing wider financial pressure. (Source: Colorado Attorney General’s Office)
Key Takeaways
- Colorado AG settled with PetSmart for $225,000 over allegations that its “free” Grooming Academy was a TRAP that saddled employees with thousands in reimbursement costs if they left early
- More than 60 former Colorado PetSmart employees will receive settlement checks in the mail
- Payment levels: $5,500 (sent for collection), $5,000 (remained due to agreement), $2,100 (left before 2 years and 3 months)
- No claim necessary – checks are sent directly by post; cash within 90 days
- Training Repayment Agreement Provisions (TRAPs) are a growing problem across all industries
Frequently asked questions
- Do I have to file a claim to receive a settlement check?
- No. The Colorado AG office identifies eligible former PetSmart employees and sends checks directly. You do not need to submit a declaration form. If you believe you are eligible and have not received a check, please contact the AG’s office at (720) 508-6890.
- What were Training Refund Agreement Provisions (TRAPs)?
- TRAPs are employment contract clauses that require employees to repay employer-paid training costs if they leave within a specified period. In PetSmart’s case, the training was advertised as free, but the actual cost ($5,000-$5,500) had to be reimbursed to PetSmart if an employee left before completing approximately two years of employment. Colorado and several other states have taken steps to limit or ban TRAP clauses.
- Can I still sue PetSmart separately?
- This settlement resolved Colorado AG’s civil enforcement action. If you believe you have individual claims against PetSmart, consult an employment attorney. The AG’s settlement does not necessarily preclude individual employees from pursuing their own claims, but an attorney can advise you on your specific situation.
- What should I do if someone contacts me claiming to be from the AG’s office and asks for my bank account or social security number?
- That’s fraud. The Colorado AG’s office explicitly warned that it will not request personal financial information, dates of birth or Social Security numbers to distribute settlement funds. Hang up and report the contact to AG’s fraud hotline.
- Does this settlement affect PetSmart groomers outside of Colorado?
- No. This was an enforcement action by Colorado AG and only affects former PetSmart employees in Colorado. Employees in other states who believe they have been subjected to similar TRAP practices should contact their own attorney general’s consumer protection office.
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