Pay for training or studying at home?

I really struggle with the gray areas of paying an employee to study or learn things during their off hours (like evenings) or not paying them when it’s something we don’t require.

Here are some examples:

Employee wants to take our internal test that (if passed) would get them promoted to a higher level of loan officer. They take loan policies, study guides, etc home to study for the test. Do we have to pay them for studying since it’s “work-related”? Since moving to the next level isn’t a job requirement, does that mean it’s entirely voluntary and we don’t have to pay?

Employee wants to learn more about Excel (which isn’t a job-requirement) but “could” make them a more attractive applicant for a different job or “might” enhance their overall job production. This is strictly a career enhancement choice for personal growth. They study at home during off hours and are using our in-house learning system. Do we have to pay them for studying since it may make them more productive? These same classes are done in person during work hours and the attendees get paid for attending.

Employee checks a library book out of our internal library that teaches them how to be more organized at work, home, etc. Do we pay for them to read it at home since improving their organizational skills will help them on the job?

Here’s the kicker…we have some positions that have the time during the day to do some of the studying/learning (like between transactions). They get paid during the whole time. Some positions don’t have time during the day to take advantage of our learning system and must do it from home if they choose.

If you think we should pay for the time employees spend learning at home, how would you monitor their time? Is it just taking their word for it that they spent 2 hours studying when they may have only spent ½ hour?

HELP! I’d really appreciate your input.


Comments

  • 6 Comments sorted by Votes Date Added
  • Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act (FLSA)

    Lectures, Meetings and Training Programs: Attendance at lectures, meetings, training programs and similar activities need not be counted as working time only if four criteria are met, namely: it is outside normal hours, it is voluntary, not job related, and no other work is concurrently performed.

    [url]http://www.dol.gov/esa/whd/regs/compliance/whdfs22.pdf[/url]

    If you have an employee who is attending night school in order to complete a degree which will ultimately help them further their career - will you pay them for the time spent in class?

    We have internet based training here which is required (BSA etc.). The tellers can complete it during the day but some people cannot. I understand your dilemma.
    It seems as though what you are referring to is voluntary?

    Anyone else....


  • Basically, I think it's voluntary also...except for the stuff that's mandatory (like BSA). I'm hoping others with also respond with how they deal with this.

    Thanks for your response!
  • If you don't require the training, then you don't have to pay them to do it. After all, you are actually helping them by letting them have the materials to improve their positions for free. It is a benefit, not something earned. Even if taking an Excel class makes them better in the job they are in, it is a precurser to a promotion later (doing an excellent job on your current position is usually required before you get promoted.)

    Some of your employees learn while they are just engaged to wait. Good for them. However, if they could just sit there then they are choosing to use their extra time to improve themselves. An employee who has no extra time on the job may not like it, but they should accept that they also can choose to learn on their extra time (just not on the job.) The higher up employees go, the less time they will have to learn anyway.

    Just my 2 cents.

    Good luck!

    Nae
  • If I understand the reg correctly (which is always questionable), they have to meet all four criteria in order for it NOT to be counted as hours worked. Not sure that helps, but if in doubt, I would say count it.

    Cheryl
  • It's an internal program that is required for consideration for advancement. That might raise a red flag.
  • I have just been reseaching this issue myself. Obviously, other forumites have clarified that a key question is whether the training is voluntary or mandatory. Voluntary is not compensable. Mandatory can be but is not always.

    A key factor with training is whether the training is required by the employer for the employee's present job. If the answer is yes, the training is compensable. If the training is required by the employer for a different job, it is not compensable. If the training is desired by the employee to be more efficient or to better prepare for a promotion, it is voluntary. If an employee attends voluntary training offered by the employer during the employee's work hours, it is compensable time.

    There are some wage & hour answer books available from popular retail outlets that might help you navigate some of the FLSA gray areas. I would highly recommend one, and their cost is fairly reasonable ($30 to $50 for used books).

    best wishes
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