Employers regularly provide “training” for both new and experienced employees. Questions always arise, however, as to whether such time is compensable under the Fair Labor Standards Act and applicable state laws. This issue has gained much attention recently, as the United States Department of Labor has stepped up its investigation of claims for failure to pay employees for time spent in “training”.

The DOL has identified 4 factors, each of which must be met for training time not to be compensable. They include: (1) the training must be outside “normal working hours”; (2) the training must be truly “voluntary”; (3) the training must not be “directly related” to the employee’s position; and (4) the employee must not perform work for the employer during the training.

With respect to the requirement that the training be “voluntary”, the DOL has concluded that if an employee believes, or has reason to believe, that the employee’s position with the employer will be adversely affected if the employee does not engage in the training, such time is compensable.  Additionally, where training is a precondition to employment, the DOL has concluded that where training occurs after the employee is hired, such time is not compensable so long as work is not performed by the employee. Finally, on the issue of whether the training is “directly related” to the employee’s position, the analysis is whether the training renders the employee more capable of performing his position (compensable) as opposed to providing a new skill (not compensable). Not surprisingly, this is a blurred line with little clear guidance.

All of the above factors must be met before an employer can determine that an employee’s training time is not compensable. Accordingly, before making a determination of compensability, employers should always examine each of these factors to insure compliance with the FLSA and, where appropriate, consult counsel.

Rhoads & Sinon regularly represents employers on wage and hour issues. For more information, contact Robert J. Tribeck, Esquire at 717.237.6701 or rtribeck@rhoads-sinon.com.