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Great Lakes Wire

Thursday, November 7, 2024

Guidelines on when employers must pay for employee training

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Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website

Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | Official website

In general, time spent in job-related training is counted as time worked and must be paid. However, not every lecture, class, training program, or similar activity would qualify. If all four of the following criteria are met, employers do not need to pay employees for the training:

1. The training occurs outside of the employee’s normal work hours.

2. The training is completely voluntary (there will be no company-initiated consequences if the employee does not attend).

3. The training is not specifically job related (it may be tangentially related to their job, like most continuing education, without being specific to how they do their job on a day-to-day basis or intended to train them for new job duties).

4. No work for the employer is performed during the training (e.g., reading or replying to emails).

For example, if a software developer wants to learn a new coding language that isn’t used in the workplace and enrolls in a local college class that meets in the evenings after work, that wouldn’t need to be paid. On the other hand, if a graphic designer needs to learn a new piece of software because it will be used for future work projects, that would need to be paid.

"Have more HR questions? Partner with an HR Professional today."

This Q&A does not constitute legal advice and does not address state or local law.

Article courtesy of Ahola.

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