Know when a new hire’s work is considered compensable under FLSA

Hiring a new employee takes time—for example, time completing paperwork before the start date, as well as time reviewing policies and procedures and completing training. But how much of that time is considered compensable under the Fair Labor Standards Act (FLSA)?

Orientation and onboarding

The FLSA generally counts a new hire’s time spent in orientation and on completing onboarding paperwork and job training as hours worked that must be compensated, even if the orientation, onboarding, or training occurs outside regularly scheduled hours or away from the employer’s place of business.

For new employees, compensable time includes all time they spend on:

• Completing tax, payroll, benefits, and insurance paperwork;
• Reviewing policies and procedures that are required reading or that the employer requires them to review and sign; and
• Training directly related to their job, such as watching instructional videos, shadowing experienced employees, and other similar training activities to learn the job.

Hours worked and compensable time

Two provisions of federal labor law answer this question. The first provision states that nonexempt employees must be compensated for any time they must “suffer” or are “permit[ted] to work.” The second provision excludes certain activities that must meet four factors, all of which must be true for an onboarding or a training activity to be noncompensable: