There may be a dealer that paid the previous employer for the training they provided; but I have never heard on one.
I can understand that requiring a tech to go to school, and to sign a contract, could be illegal. I have only heard of one real case of a tech leaving and getting sued - the dealer won. A contract is a contract.
If my tech would like to take off a few days for training, and the dealership wants to loan him $500 bucks, and the dealership wants to waive 1/6th or 1/12th of the loan for every month he works for the dealership...what law is broken?
I do like the idea of giving the tech options - borrow money to take a few days off for training, or no pay/no loan for training - and maybe a raise after certified?
I think the key is if the training is a condition of employment.