Q&A: Must employers pay for training that is to be completed before onboarding?

We have a position that requires security clearance. After the interview process, selected applicants are offered a position conditioned on completing an online 2-hour training course and successfully passing a test about the course. Because they have not been hired yet and won’t be hired without the security clearance, the training course time is unpaid.

Should we be paying them for training courses that are a condition of employment? If so, how can we pay them if they haven’t been onboarded?

Generally, employers must pay employees for any required training time. Individuals who have been offered a position but have not “officially” started work likely would be considered employees on the date of their required training. Accordingly, the most prudent course of action likely is to consider the date of training to be the first official day of employment to ensure proper payment.

Training programs conducted during regular working hours constitute work time and must be compensated as such, according to the federal Fair Labor Standards Act (FLSA). After-hours training need not be compensated if:

• Attendance is entirely outside normal working hours and is voluntary (attendance will not be found voluntary if the employee is led to believe that attending is critical to the employee’s job).
• The training is not directly related to the employee’s present job.
• The employee does not do any productive work during the program.

A training program is considered directly related to the job if the training is designed to help the employee handle the present job more effectively (but voluntary attendance at school outside the workplace, after hours is not work time, even if it is related to the employee’s present job). Time spent in training for a new job or in the development of new skills is less likely to be classified as compensable work time.

In the situation you described, you indicated that this training is required for the job. Candidates have been offered a position which is conditioned on completion of the security training. Under these circumstances, we believe that your company is required to pay these individuals for such training. As the candidates cannot perform the job without clearance, you will likely want to make the training date their date of hire. As the training is only a couple of hours and e-learning, perhaps this first day could also incorporate other onboarding and orientation after the training is completed.

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