Compensability of Employee Training Time Under the Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) sets minimum wage, overtime, recordkeeping, and childlabor standards for employees in private sector and federal, state, and local governments. One area that often raises questions is whether time spent in training must be counted as compensable work time. This page provides a concise overview of the FLSAs rules, relevant Department of Labor (DOL) guidance, and practical steps employers can take to stay compliant.

1. The Basic Rule

Under the FLSA, **all time that an employee is required to be on the employers premises, or otherwise under the employers control, must be counted as hours worked**. This includes training that is:

• Mandatory for the job the employee performs,
• Conducted during regular working hours, or
• Conducted at a location the employer controls (including offsite facilities).

If any of these conditions apply, the training time is **compensable** and must be included in regular and overtime calculations.

2. When Training Is Not Compensable

The DOL recognizes limited situations where training may be noncompensable:

• Voluntary attendance The employee chooses to attend and the training is unrelated to the employees current job duties.
• Outside regular work hours The training occurs entirely outside the employees normal work schedule, and the employee is free to leave the training at any time.
• Location not under employer control The training is held at a public venue (e.g., a conference center) where the employee is not required to stay for the duration of the event.
• Educational courses unrelated to job performance Courses that improve general knowledge or are for personal advancement and not tied to the employees present role.

Even in these cases, if the employer requires attendance or the employee is otherwise all away from home for the benefit of the employer, the training becomes compensable.

3. Key DOL Regulations & Court Decisions

3.1 Department of Labor Opinion Letters

The DOL has issued several opinion letters that clarify the rule:

• Opinion Letter No. 3 (June 14, 1949) Established that all time spent in training or attendance at meetings is work time.
• Opinion Letter No. 1 (June 29, 1960) Confirmed that training for a new job is compensable even if the employee is classed as trainee.
• Opinion Letter No. 58 (July 7, 1974) Clarified that nonmandatory, optional training conducted during nonworking hours is noncompensable.

3.2 Notable Court Cases

• Stewart v. L&I (3rd Cir. 1974) Held that mandatory safety training held after normal hours was compensable.
• IBP, Inc. v. Alvarez (7th Cir. 2015) Confirmed that allawayfromhome training required by the employer is work time.
• Walmart Stores, Inc. v. Dukes (Supreme Court, 2011) While not a training case, the decision emphasized the importance of proper recordkeeping for all hours worked.

4. Practical Checklist for Employers

1. Identify the purpose Is the training directly related to the employees current job duties or required for a new position?
2. Determine who is required to attend Mandatory attendance makes the time compensable.
3. Consider the location Training at a site under the employers control (including a rented conference room) is compensable; a public venue where the employee may leave at will may not be.
4. Check the timing If the training occurs during the employees regular work schedule, it is compensable regardless of location.
5. Document the training Keep records of attendance, duration, and purpose of each session.
6. Pay accordingly Include training hours in the calculation of overtime (timeandahalf for hours over 40 in a workweek, double time for certain holidays, etc.).

5. How to Handle Common Scenarios

5.1 OnTheJob Safety Training

Safety training required by OSHA or internal policies is considered work time. Even if it is scheduled after normal hours, the employee must be paid for the entire duration.

5.2 OffSite Leadership Seminar

If a manager is required to attend a leadership seminar at a hotel, the travel time, the seminar itself, and any mandatory meals are compensable. If attendance is optional, only the portion the employee actually works (e.g., preparing a presentation) must be paid.

5.3 Voluntary Professional Development

When an employee elects to take a certification course outside of work hours and the employer does not require participation, it is noncompensable. However, if the employer pays for the course, the time spent studying may still need to be compensated if the employer controls the schedule.

6. RecordKeeping Requirements

The FLSA requires employers to maintain accurate records of hours worked for nonexempt employees. This includes:

• Start and end times for each training session.
• The nature of the training (mandatory vs. optional).
• Location of the training.
• Any travel time that is compensable.

Failure to keep precise records can lead to penalties, backpay awards, and liquidated damages.

7. Consequences of NonCompliance

Employers who incorrectly classify training time as noncompensable can face:

• Backwage awards for unpaid overtime.
• Liquidated damages equal to the amount of back wages.
• Civil monetary penalties ranging from $1,000 to $2,000 per violation (higher for repeated or willful violations).
• Potential litigation costs and reputational damage.

8. Resources

• DOL Fact Sheet 15 Compensable Time Under the FLSA
• FLSA RecordKeeping Requirements
• Contact the Wage and Hour Division

By understanding the FLSAs guidelines and applying them consistently, employers can ensure that training time is properly compensated, avoid costly legal exposure, and demonstrate a commitment to fair labor practices.