Don't get tripped up on time and attendance during employee training

While promoting paid training for new hires isn't wrong by any means, employers should know that they have no other options except to compensate fresh employees while they learn the ropes of a business.

For training to not count as compensable employee time under the Fair Labor Standards Act, it must pass a four-part test that disqualifies the onboarding new workers customarily undergo, attorney Jordan B. Schwartz, of law firm Epstein Becker Green said. In fact, all work-related education must pass the aforementioned test, which focuses on the non-essential nature of such opportunities, to be exempted from payment.

According to the industry website HR.com, the four parts of the training time exemption test are: attendance occurs outside of regular working periods, no productive work activity is performed or completed during the session, time spent at the session is completely voluntary and training isn't directly associated with an employee's current duties.

Because educating new workers nearly always includes information on business culture, unique systems, specifics of the work they are expected to perform and other items directly related to their employment responsibilities, it is customarily counted as paid time for workers.

Companies can use attendance tracking software to make sure they are accurately recording the hours worked and pay scales for all employees.


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