Question: Do we have to pay a nonexempt (hourly) employee to complete training courses outside of his normal working hours when it is a requirement for the job?
Answer
The following information is excerpted from the U.S. Electronic Code of Federal Regulations.
Employees who spend time at lectures, work courses, employer-sponsored training programs, or employee meetings must generally count that time as hours worked for pay purposes unless all of the criteria below are met.
When training does not count as hours worked
- Time is outside of normal working hours.
- Coursework is unrelated to the employee’s regular job (for example, learning requirements for a new or higher-rated job).
- Attendance is strictly voluntary (continuing education requirements are an exception).
- No production work is performed during the training.
Additional pointers on employer obligations
- An employer must compensate employees for mandatory training time unless it’s directly related to professional licensing.
- If an employee is required to attend training on a day they are not normally scheduled, many employers provide at least a half day’s pay.
- Time spent on voluntary training is not compensable if it’s outside normal working hours and not directly related to the employee’s job. For example, training a programmer on a current application is compensable, while paying for an MBA so an employee can become a future manager typically is not.
- Training that directly benefits the employer is generally compensable. For example, new-hire training on welding procedures used to produce a client-delivered product is compensable, while voluntary welding practice that creates no employer product may not be.
- Training expenses can be reimbursed on a pro-rata basis if an employee agrees in advance and leaves the company shortly after completing the program.
- An employer that operates a for-fee training program should not make completion of that paid program a condition of hire.
For official guidance, consult the U.S. Department of Labor materials and your payroll or HR policies to confirm how these rules apply in specific situations.
If your organization offers or purchases training programs, consider insurance and risk options such as Job Training Insurance to address program-related liabilities.
For structured sales or development-focused training, see Sales Development Training Program for related coverage considerations.
To review coverage details or policy options for your training programs, talk to an agent familiar with employer training risks and payroll obligations.
Frequently Asked Questions
Is mandatory training always paid time for hourly workers?
Generally yes—mandatory training time is compensable unless it meets specific exemptions such as being entirely outside normal hours, voluntary, and unrelated to the job.
Do we have to pay if training is for a future role the employee might take?
Training that prepares an employee for a future or higher-rated job is typically compensable because it relates to improving job qualifications.
Can we require repayment if an employee leaves soon after expensive training?
Yes, employers can use a written agreement to recover training costs on a pro‑rata basis if the employee agreed to this arrangement in advance.
Is continuing education treated differently from other training?
Continuing education required for maintaining a professional license or certification is usually compensable and may be treated as an exception to "voluntary" attendance rules.