Some recurrents are 5,000 some are 50,000 and this could be a factor but also Some operators are not willing to gamble especially if they know they are paying less than industry standard.
If it is a desirable sought after place to work then there will not be a need for a contract.
But, a person only has his word and should stand behind it.

I left my previous scumbag operator and I had a fairly large contract. I found greener pastures with another operator that flew the same type that I really wanted to work for. I was able to negotiate with the new operator a initial hiring bonus of about 75% what my previous operators contract was because I already had the type. I wasn't sure if scumbag op would pursue the contract until I was called by a collection agency soon after I left. I took my fresh hiring bonus and some other funds I could scrape together and paid off my contract (in-full) to collection agency free and clear with no effect to my credit rating. BEFORE I considered any of the above I talked to a family member who is actually a contract attorney and told me even if I win the case, an out of state lawyer and fees could be well beyond what the original contract $ was for. Short story=prepare to pay contract in full or sit it out until expiration. I thank myself everyday for busting my previous contract. Has saved my life and my certificate!! Of course your results may vary. Good luck!

Now that story is BS and has been making the rounds for 30+ years.

It's been around in a lot of different forms for a lot longer than that, but it's not BS.

It was actually relayed to me in person by an inspector during a check ride, regarding his own personal airplane. I'm sure it's not the only time it's happened.

I was told the same story by an 80-year old FAA POI while he was trying to find a reason to fail me on a asst. Chief 141 ride.
It’s been making the rounds.
Does t really matter if it’s true or not, it just signals a certain attitude.

Nobody could fool Inspector Badflaps with phony logbook entries. He knew all of the tail numbers by heart, because they were single digits. 😁

Because the Wrights only built a couple!

But it's happened more than once, and there are only a relative handful of GA airplanes in smaller communities so I'm sure somebody has been caught.

Yes, one of my examiners told the same story. Which I dutifully relayed to kids who I examined.

Not true. There were three.

The red one was a dog.