When employees must complete required in-person or virtual continuing education training, it most always counts as time worked.

Throughout my 30-plus years in the industry, this subject has been a source of continual debate. Shockingly, even with all the information available through HR training and compliance, newsletters, and blogs they still miss the mark in adhering to compliance and regulatory mandates related to this subject.

For many (not all) practice leaders it simply boils down to the fact that they don’t understand that rules apply to this subject or that they misinterpret the rules.

Practice owners must understand the federal and state laws. The U.S. Department of Labor (DOL), Wage and Hour Division (WHD), enforces the Fair Labor Standards Act (FLSA), the federal law that provides minimum wage, overtime, child labor, and recordkeeping requirements for covered employers in the U.S.

Determining compensation due to your non-exempt employees under the FLSA depends upon the accurate tracking of compensable time, or what the law refers to as hours worked.

One area that practice owners and even managers fail to adhere to is compensating employees for time spent attending work-related meetings, continuing education training classes, and conferences. To the surprise of many, CE (i.e., time attending the course, travel time, meals, lodging, and tuition) comes under the federal government and, in some cases, state government wage and hour regulations. 1

The time must be recorded and paid for. They also must be paid for any time spent in training while they shadow experienced employees or do anything else related to their current job. 2

You might be surprised to learn that WHD found failing to compensate employees for hours spent in training and meetings ranked number 1 among the top four violations of the FLSA at businesses nationwide. When such violations are disclosed, employers are required to pay back wages including applicable overtime to employees, and risk exposure to additional damages and penalties. The costs of non-compliance can quickly escalate. 3

Allow me to provide some general guidelines on terms you can relate to and other conditions that may apply.

General Guidelines Under the FLSA

1. Mandatory Training:
   • Compensable: If attendance is required by the employer, the time spent in training must be paid.
   • Example: An employer mandates that a dental assistant attend a seminar on new dental procedures. This time must be compensated.
2. Job Relevance:
   • Compensable: If the training is related to the employee’s current job, the time spent must be paid.
   • Example: A dentist requires their hygienists to attend a course on the latest teeth cleaning techniques. This time should be paid.
3. During Regular Working Hours:
   • Compensable: If the training occurs during the employee’s regular working hours, the time must be paid.
   • Example: A course held from 9 AM to 5 PM for a receptionist who normally works those hours.
4. Outside of Regular Working Hours: 
   • Compensable: If the training occurs outside of the employee’s regular working hours, the time must be paid.
   • Example: A work-related team meeting is held from 9 AM to 5 PM on a Friday that is required by the employer but falls outside of the normal work hours.

Specific Conditions for Non-Compensable Training

There are only a few rare conditions when an employee would not receive compensation for attending continuing education classes and training. For time spent in training to be considered non-compensable under the FLSA, all four of the following criteria must be met:

1. Attendance is outside the employee’s regular working hours.
2. Attendance is voluntary.
3. The training is not related to the employee’s current job.
4. The employee does not perform any productive work during the training.

The employer may not have to provide compensation if training meets the above-mentioned criteria even when the employee must complete a course to receive or retain a certification or license. 4

Differential Pay for Training

Employers must compensate their employees for most work-related meetings, continuing education classes and training, and conferences. However, in some cases, employers are within their legal right to compensate employees at a differential rate of pay. This rate could be considerably lower than the employee’s normal rate of pay but cannot be less than the state minimum wage. This is fairly common. 5

Overtime When Attending Training

The total number of hours worked is the sum of regular working hours, plus hours spent attending CE events, and travel time to and from that event. Therefore, employers must compensate their employees at time-and-a-half for all applicable overtime hours. 6

Compensation For Travel Time to and from a CE Event

As a rule, physically driving to a CE event that is in another city is considered work time, regardless of when the drive time hours occur (regular commute time can be subtracted).

Passenger travel on any common carrier (airplane, bus, train, etc.) is counted as time worked when the travel time cuts across normal work hours, and when it does, it must be paid. Normal work hours count on both regular workdays and days that are normally off including Friday, Saturday, and Sunday. 7

State Laws and Company Policies

There are exceptions and variations based on state laws and specific employment agreements. Some states have more stringent requirements than federal law, and certain employment contracts or practice-specific policies may stipulate different arrangements regarding training and education.

It’s best practice for practice owners as well as employees to check their employment contracts, employee manuals for practice-specific policies related to continuing education, and relevant state labor laws to understand their rights and obligations regarding compensation for continuing education classes. Employers should consult legal counsel or HR experts to ensure compliance with applicable laws and regulations.

Best Practices for Employers

1. Clear Communication: Communicate the terms of training attendance and compensation to employees.
2. Written Policies: Establish written policies regarding training and education that specify when training time is compensable.
3. Legal Consultation: Consult with legal counsel or HR experts to ensure compliance with applicable laws.
4. Documentation: Keep detailed records of training sessions and hours, including whether they are mandatory, their relevance to job duties, and the timing of the sessions.

By following these guidelines practice owners can ensure they are compliant with labor laws and fair to their employees regarding compensation for time spent in continuing education classes.

Most of the practices that I coach compensate employees at their normal rate of pay whenever attending work-related meetings, continuing education classes and training, and conferences. They view this professional development as a win-win investment for all.

Side note: please keep in mind that this article applies to non-exempt employees only. You must ensure that all your employees are correctly classified. An employee on salary does not always qualify them as an exempt employee. 

References: 

1. https://www.stimmel-law.com/en/articles/payment-employee-travel-time-expenses-and-seminars-what-required
2.  https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/HoursWorked.pdf
3.  https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/HoursWorked.pdf
4. https://www.carolinaemploymentlawyer.com/faqs/am-i-supposed-to-get-paid-for-training-in-north-carolina-carolina-employment-lawyer.cfm
5. https://www.avvo.com/legal-answers/can-employer-pay-a-separate-training-wage-from-wha-982766.htm
6. https://www.dentaleconomics.com/practice/human-resources/article/16392427/rules-of-the-road-paying-for-training-and-travel
7. https://sbshrs.adpinfo.com/blog/training-time-and-travel-time-when-is-pay-required
8. https://www.cedrsolutions.com/travel-seminar-time-compensable/#:~:text=The%20%E2%80%9CPlanes%2C%20Trains%20%26%20Automobiles,across%20their%20normal%20work%20hours