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Are Training Hours Paid? Rules for Meetings, Orientation and Classes

Are Training Hours Paid? Rules for Meetings, Orientation and Classes
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Quick Answer

Usually, yes. Under federal law, training, meetings and lectures are paid work time for non-exempt employees unless all four of these are true: attendance is outside regular working hours, it's truly voluntary, the training isn't directly related to the employee's job, and the employee does no productive work during it. Required orientation, mandatory meetings and job-related training are paid, and the hours count toward overtime.

Training is one of the most common places where employers accidentally skip pay. A new hire watches safety videos before their first shift. A team stays an hour after close for a meeting. An employee is asked to finish an online course at home. All of those can be paid time, and getting it wrong is one of the easiest ways to end up with an unpaid wage claim.

This guide explains the federal rule for when training is paid, how it applies to orientation, meetings, online courses and travel, and how to set up training so it's paid correctly.

Note: This is general information, not legal advice. Some states have their own rules on training time, and union contracts can add more, so check the rules where your employees work.

The Federal Rule: The 4-Part Test

Under the Fair Labor Standards Act, time spent at lectures, meetings and training programs is hours worked for non-exempt employees unless all four of these conditions are met (29 CFR 785.27):

  1. Attendance is outside the employee's regular working hours.
  2. Attendance is in fact voluntary.
  3. The course, lecture or meeting is not directly related to the employee's job.
  4. The employee does not perform any productive work during the training.

If even one condition isn't met, the time is paid. In practice, that means most training employers ask for is paid.

What Each Condition Really Means

Outside Regular Working Hours

Training during a scheduled shift is always paid. The question only comes up for training before or after a shift, on a day off or at home.

Truly Voluntary

The regulation says attendance isn't voluntary "if it is required by the employer." It also isn't voluntary if the employee is led to believe their working conditions or continued employment would be affected by not attending. "Optional" training that's tracked in performance reviews, or that managers strongly hint everyone should attend, probably isn't voluntary.

Not Directly Related to the Job

Training is directly related to the job "if it is designed to make the employee handle his job more effectively." Safety training, product training, software training and customer service training for an employee's current role are directly related. Training that prepares an employee for a different or higher-level job, rather than their current one, isn't considered directly related, even if it incidentally helps in their current role.

No Productive Work

If employees do actual work during training, such as serving customers as part of a "training shift," handling calls or completing real assignments, that time is paid regardless of the other conditions.

Is It Paid? Common Situations

SituationPaid?Why
New-hire orientation the employer requiresYesRequired attendance isn't voluntary
Mandatory staff meeting before or after a shiftYesRequired and job-related
Required online safety course completed at homeYesRequired and job-related, even off-site
Optional lunch-and-learn on a job-related topicUsually yesJob-related, so it fails the test even if voluntary
Voluntary evening class on an unrelated topic the employer offersUsually noCan meet all four conditions
Employee enrolls in a college course on their own initiative after hoursNoIndependent training on the employee's own initiative isn't hours worked, even if job-related
Training shift where the trainee helps real customersYesProductive work
Course to prepare for a promotion, voluntary and after hoursOften noNot directly related to the current job, if the other conditions are met

Independent and Special Training Situations

The federal rules recognize a few situations where training time isn't counted:

These are narrow exceptions. If you're relying on one, document the program and make sure attendance really is voluntary.

Travel to Training

Travel follows its own rules, which also apply to training:

See travel time pay for hourly employees for more examples.

Training Time and Overtime

Paid training hours are hours worked, so they count toward the 40-hour overtime threshold. If an employee works 38 hours on the schedule and attends 4 hours of required training, that's 42 hours, and 2 hours are paid at time and a half. In states with daily overtime, such as California, training also counts toward the daily limits.

Can You Pay a Different Rate for Training?

Generally, you can pay a different hourly rate for training than for regular work, as long as it's at least the applicable minimum wage and the employee knows the rate in advance. If the employee works at two or more rates in the same week, overtime is generally based on the weighted average of those rates, not just the higher or lower one. Some states have additional rules, so check before setting a separate training rate.

What About Exempt Employees?

Exempt salaried employees are paid their salary regardless of how many hours they work, so training time doesn't change their pay. Their salary covers it. Non-exempt salaried employees are different: their training hours count toward overtime the same as hourly employees.

Pre-Hire Training and Trainees

Unpaid "try-outs," trial shifts and pre-hire training are risky. Once someone is doing work that benefits your business, such as serving customers, stocking shelves or answering phones, that time generally must be paid. If a candidate is working, pay them, even if it's a single trial shift. For internships, the DOL uses a separate "primary beneficiary" test, so treat unpaid internships at for-profit businesses with caution.

Licenses and Certifications

Some jobs require a license or certification, such as a food handler card, a forklift certification or continuing education for a professional license. Whether that time is paid depends on the facts: who requires it, when it happens, whether it's for the current job and whether it's part of the employer's program. If you require it for the employee's current job and it happens during work time or at your direction, plan to pay for it. If you're unsure, the safest choice is to pay.

How to Set Up Paid Training Correctly

  1. Schedule training during shifts whenever you can.
  2. Track training time on the time clock, with a separate job or activity code, so it's paid and counted toward overtime.
  3. Pay for online courses employees are required to complete, by assigning a set amount of paid time or having employees clock in.
  4. Watch overtime in weeks with extra training.
  5. Write it down. Put training pay rules in your handbook, including any different training rate.
  6. Keep records of who attended, how long and when.

Our employee training log template makes the record-keeping easy.

Sample Training Pay Policy

Training and Meetings

Non-exempt employees are paid for all time spent in required training, orientation and meetings, including online courses completed outside the workplace. Employees must clock in using the [training] code for training time. Training hours count as hours worked for overtime.

Training is paid at [your regular rate / $X per hour, never less than minimum wage]. Required travel to training is paid according to our travel time policy.

Voluntary courses outside working hours that aren't related to your current job are not paid unless your manager approves them in advance.

Training Pay Examples by Industry

IndustryCommon trainingUsually paid?
RestaurantsFood safety, menu tastings, POS trainingYes, if required or job-related
RetailProduct knowledge, register training, loss preventionYes
HealthcareAnnual compliance, infection control, new equipmentYes, when required by the employer
ConstructionSafety meetings, new tool trainingYes
OfficesSoftware training, compliance coursesYes, for non-exempt employees
Any industryVoluntary unrelated class after hoursOften no, if all four conditions are met

How to Pay for Online Training

Online courses are the training most often left unpaid, because they happen outside the normal flow of a shift. Choose one approach and put it in writing:

Whatever you choose, make sure the hours land in payroll and count toward overtime.

Training Records to Keep

These records help you prove training was paid and that employees completed required safety or compliance training.

If You Weren't Paid for Training

  1. Write down the dates, times and length of the training, and whether it was required.
  2. Keep any emails, schedules or messages about it.
  3. Ask your manager or payroll in writing to be paid for the time.
  4. If it isn't fixed, contact the U.S. Department of Labor's Wage and Hour Division or your state labor department.

Cross-Training and On-the-Job Training

Most training doesn't happen in a classroom. A new server shadows an experienced one. A warehouse associate learns a second role during a slow afternoon. A cashier is cross-trained on opening procedures. All of this happens during work time and is paid, because the employee is on the clock and learning to do their job, or a job you've asked them to do. The pay question usually comes up with the trainer instead: if a veteran employee spends a shift training others, their pay doesn't change, but some employers add a small trainer premium to reward the extra responsibility. If you do, include it in the regular rate for overtime like any other premium.

Training During Unpaid Breaks

A "working lunch" training session isn't a break. If employees are required to attend training during a meal period, or are expected to watch training videos while they eat, the meal period isn't a bona fide unpaid break, because the employee isn't completely relieved of duty. Pay for that time, and schedule a real break separately where your state requires one. See are lunch breaks paid.

Common Training Pay Mistakes

MistakeFix
Unpaid orientation before the first shiftPay for all required orientation
Online courses "on your own time"Pay for required courses wherever they're completed
Calling required training "optional"If it's expected, treat it as paid
Meetings after clocking outHave employees stay clocked in for meetings
Forgetting training hours in overtimeTrack training on the time clock with everything else
Unpaid trial shiftsPay anyone who does real work

Track Training Time in Updoot

Updoot's employee time clock lets employees clock in to training, meetings or regular work by job or activity, so training hours are paid and counted toward overtime automatically, and the payroll report shows exactly how much time went to training each pay period.

Sources

Related Reading

Travel Time Pay for Hourly Employees →

Employee Training Log Template →

How to Track Employee Hours →

Frequently Asked Questions

Do employers have to pay for training? ▶
Usually, for non-exempt employees. Training is paid unless it's outside working hours, truly voluntary, not directly related to the job and involves no productive work. All four must be true.
Is orientation paid? ▶
Yes, if the employer requires it. Required orientation isn't voluntary, so it's paid work time.
Are mandatory meetings paid? ▶
Yes. Required meetings are hours worked for non-exempt employees, including meetings before or after a shift.
Do I have to pay for online training done at home? ▶
If you require it, or it's directly related to the job, yes. Where it's completed doesn't change whether it's paid.
Does training time count toward overtime? ▶
Yes. Paid training hours are hours worked and count toward the 40-hour weekly overtime threshold.
Can training be paid at a lower rate? ▶
Generally yes, if it's at least minimum wage and agreed in advance. Overtime is then generally based on the weighted average of the rates worked that week.
Is training during lunch paid? ▶
Yes, if employees are required to attend or work during it. A meal break is unpaid only if the employee is completely relieved of duty.
Do I have to pay employees who train others? ▶
Yes, trainers are working, so their time is paid as usual. Some employers add a trainer premium, which then counts in the regular rate for overtime.
Is a safety meeting before a shift paid? ▶
Yes. Required safety meetings are hours worked, whether they happen before, during or after a shift.
Are unpaid trial shifts legal? ▶
Risky. If a candidate does real work that benefits the business, the time generally must be paid.

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