Quick Answer: More than 60 former PetSmart groomers in Colorado are receiving settlement checks after the state Attorney General sued PetSmart for advertising its Grooming Academy as “free” while secretly charging workers up to $5,500 — and then sending those who left early to debt collection. Checks are being mailed now. If you are one of the affected workers, cash or deposit your check within 90 days.
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 — luring workers with the promise of free training and then threatening them with thousands of dollars in repayment costs if they left early.
The case centers on what consumer advocates call TRAPs — Training Repayment Agreement Provisions — a practice that critics say converts employer training programs into a form of wage control. PetSmart’s Grooming Academy was advertised as free. According to the Colorado AG’s complaint, what workers were not told upfront was that the training actually cost $5,000 or $5,500, and they would owe that amount back to PetSmart if they left before completing a multi-year commitment.
How the Trap Worked
PetSmart’s Grooming Academy training came with a catch buried in the contract. Workers who enrolled were told the training was free. The actual arrangement:
- Training had a real cost of $5,000 or $5,500
- Workers owed the full amount back if they left within a set period
- Staying one year forgave half the cost; staying two years forgave the full amount
- Workers who left before that two-plus year window were billed — and some were sent to debt collection
The result: Workers who thought they were in a free training program found themselves owing thousands of dollars if they tried to leave. The AG’s office found that some groomers who attempted to leave were sent to debt collectors over training costs they were never told they would owe. The Denver Post reported that the AG’s office described the TRAPs as trapping workers in their jobs through deception.
The Colorado AG filed suit in July 2025. PetSmart agreed to a settlement in November 2025. The company denies liability or wrongdoing.
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Who Gets Paid and How Much
More than 60 former PetSmart Colorado workers qualify for payments. The settlement uses a three-tier structure based on what each worker experienced:
Checks are being distributed by mail. Workers do not need to file a claim — the AG’s office is identifying and contacting qualifying former employees directly.
What Affected Workers Need to Know
- Watch for a check in the mail from the Colorado AG’s office
- 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 requesting your Social Security number, date of birth, or bank account details is fraud
- Questions? Call (720) 508-6890
Why This Case Matters Beyond PetSmart
TRAPs are not unique to PetSmart. Training repayment agreements have become increasingly common across retail, food service, and service industries. Workers sign them without fully understanding that “free” training comes with conditions that can cost them thousands if they leave for any reason — including a better job, a family emergency, or a workplace problem.
The math behind the trap: A groomer earning minimum wage who left after one year would owe $2,500–$2,750 in training repayment. That’s potentially months of work erased by an exit fee the worker never understood they were agreeing to. The Colorado AG’s lawsuit called PetSmart’s practices “immoral, unethical, and oppressive” in court filings.
As part of the settlement, PetSmart agreed to:
- Comply with Colorado law on training repayment agreements going forward
- Notify affected workers that they are released from TRAP obligations
- Cease debt collection activities against workers covered by the settlement
If you are dealing with a debt you believe you owe your employer for training, or a former employer is threatening to collect training costs from you, consider reaching out to your state attorney general’s consumer protection office. Several states have moved to limit or ban TRAPs in recent years.
You can also use my free Find Your Path tool if an employer debt situation is creating broader financial pressure. (Source: Colorado Attorney General’s Office)
Key Takeaways
- Colorado AG settled with PetSmart for $225,000 over allegations its “free” Grooming Academy was a TRAP that saddled workers with thousands in repayment costs if they left early
- More than 60 former Colorado PetSmart workers are receiving settlement checks by mail
- Payment tiers: $5,500 (sent to debt collection), $5,000 (stayed due to the agreement), $2,100 (left before 2 years 3 months)
- No claim needed — checks are mailed directly; cash within 90 days
- Training Repayment Agreement Provisions (TRAPs) are a growing concern across industries
Frequently Asked Questions
- Do I need to file a claim to receive a settlement check?
- No. The Colorado AG’s office is identifying qualifying former PetSmart workers and mailing checks directly. You do not need to submit a claim form. If you believe you qualify and have not received a check, contact the AG’s office at (720) 508-6890.
- What were Training Repayment Agreement Provisions (TRAPs)?
- TRAPs are employment contract clauses that require workers to repay employer-paid training costs if they leave within a set period. In PetSmart’s case, the training was advertised as free, but the actual cost ($5,000-$5,500) was owed back to PetSmart if a worker left before completing approximately two years of employment. Colorado and several other states have moved to restrict or ban TRAP clauses.
- Can I still sue PetSmart separately?
- This settlement resolved the 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 bar individual workers from pursuing their own claims, but an attorney can advise on your specific situation.
- What if someone contacts me claiming to be from the AG’s office and asks for my bank account or Social Security number?
- That is 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 the AG’s fraud hotline.
- Does this settlement affect PetSmart groomers outside of Colorado?
- No. This was a Colorado AG enforcement action and covers former PetSmart workers in Colorado only. Workers in other states who believe they were subject to similar TRAP practices should contact their own state attorney general’s consumer protection office.
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