Do you pay an employee for taking a training course?  Does it matter if the training course is mandatory or voluntary?  What about paying the employee for travel time to and from the employee’s home and the employee’s office?

Knowing the answers to these questions can mean the difference between being in compliance with the Fair Labor Standards Act (“FLSA”) and violating the Act. 

The Fair Labor Standards Act (“FLSA”) was passed in 1938 and has since been amended several times.  The Act governs minimum wage, overtime pay, equal pay for men and women in similar jobs, child labor and pay-related recordkeeping.  The Act covers all employees engaged in interstate commerce, which are basically all employees. 

Under the FLSA, “working time” is defined as all hours during which an employee is required to be on duty at the employer’s premises or at a prescribed workplace.  In general, the following are considered part of compensable working time:
• Rest or meal periods of twenty (20) minutes or less
• On-call waiting time unless the employee is completely relieved from duty and has enough time to engage in non-work related activities as he/she sees fit
• Sleeping time for employees who are on duty for twenty-four (24) hours or more
• Training time when the training is designed to help the employee perform his/her job more effectively or prepare for another job with the employer
• Travel time if the travel is connected to the employer’s business

On the other hand, the following are generally not considered compensable working time:
• Rest or meal periods of thirty (30) minutes or more where the employee is completely relieved of all duties
• On-call waiting time when the employee is free to do what he or she wants
• Training time if the training takes place outside of working hours, is voluntary and is unrelated to the employee’s job
• Travel time to and from home

Employers are encouraged to consult the FLSA for additional guidance on compensable and non-compensable working time as it relates to the FLSA.

This article should not be considered legal advice.