When a company purchased a voice and data communication system from circuit maker Tellabs, it used its own employees—technicians—to install and maintain the system. After new features were added to the system, the employer engaged Tellabs to train the technicians on the updates.
As a prerequisite to the training, the employer required its technicians to complete four Web-based classes away from work and on their own time. Completing the Web-based training took about ten hours. The employer said the training would make the technicians more proficient on the job because they could now use the system’s advanced features.
Was the organization required to pay employees for the time they spent learning online? The employer asked the U.S. Department of Labor for an opinion. Under Labor Department regulations, training doesn’t need to be treated as hours worked if it meets the following four criteria:
Attendance is outside the employee’s regular work hours.
Attendance is voluntary.
The training is not directly related to the employee’s job.
The employee does not perform any productive work during the training.
While the Department of Labor ruled that the Web-based coursework met criteria a, b, and d, it did not meet criterion c. The employer told technicians that participating in the Tellabs training would enhance how they performed their job. Those technicians were also required to complete the Web-based coursework. Thus, both the training and online coursework were directly related to the technicians’ jobs, and time spent completing the coursework is compensable.
In addition, under the law, if job-related training is required as a condition of employment, the employer must pay an employee for the time spent in training.
Please consider the following question in your analysis
Question
As an employer, you believe productivity would increase if your workers built their skills. What should you do?