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by John M. Collins, P.C.
WHEN ARE TRAINING WAGES ALLOWED?
When an employee is required to complete training, payment is required for their time. However, this does not mean that such individual must necessarily be paid at the same rate as productive work. An employee may be paid different rates for different types of work (including training) so long as the rate does not fall below the applicable federal and state minimum wage.
Training pay can include training prior to starting the job, training as a new hire, or additional training as an employee. Training pay refers to the compensation provided to employees during periods of training or skill development. It encompasses various forms of remuneration, including wages, salaries, or stipends, offered to individuals while they undergo job-related training programs, workshops, or educational courses.
This type of training could include so-called “ride-a-longs” to familiarize a new employee with the employer’s procedures, safety training, watching training videos prior to starting a job, etc. On the other hand, if a voluntary webinar is provided to an employee and they decide to participate in the webinar, an employer is not required to pay them.
By way of example, consider the case of a city or town that operates its own ambulance service requires employees to attend training on patient privacy and he training will take place at the end of the employee’s regular shift. Pay is required because training is not voluntary and is related to the employee’s job.
Another exception to be aware of is voluntary training outside of working hours when the training could have been done during working hours. For example, payment isn’t required if an employee is watching a webinar or training videos outside of regular working hours if time was provided during regular business working hours to watch those videos or participate in the training.
Along the same lines, where, as part of its benefits program, a municipality provides employee tuition assistance so employees can take various courses that do not necessarily relate to their current positions. The program is strictly voluntary, and classwork occurs outside of regular working hours. If an employee decides to participate, the employee does not perform any productive work during the course. Therefore, pay for the hours spent attending the course would not generally be required because this program would meet all four criteria listed above, in that attendance is voluntary and outside regular working hours, the course is not directly related to the employee’s current job, and no productive work is performed during the course.
There are different rules under federal and state law for when an employer may pay a “trainee” less than minimum wage. The Massachusetts rules are more restrictive and, therefore, for the most part will control when such training wage may be paid.
MASSACHUSETTS LAW
Under M.G.L. Chapter 151, § 9 and 454 CMR 27.06, certain categories of trainees can be paid below the standard minimum wage—but only with a certificate from the Department of Labor Standards (DLS):
785.21 – special situations exception
- Hospitals and laboratories running formal training programs: can pay trainees 80% of minimum wage with a DLS license
- Apprentices and learner-trainees in recognized programs can similarly be paid less—with proper certification.
- Camp counselor trainees likewise may be paid sub-minimum once certified by DLS
Importantly, student workers in bona fide educational institutions (e.g. public schools, colleges) can also be paid 80% with licensing—but only for roles directly involving supervision or educational duties.
MUNICIPAL EMPLOYEES
As a General rule, Massachusetts municipal employees must receive at least the state minimum wage, currently $15/hour, with no exceptions for training or probationary periods under standard employment roles.
The 2018 state law raising minimum wage to $15 explicitly excluded municipal employees—they must follow state law like any other, with no special sub-minimum rate permitted without DLS certification.
This means that in order for a city ot town in Massachusetts to be able to utilize a training wage for municipal staff, ALL of the following apply must:
- The employee falls under a statutorily defined trainee category (e.g., hospital trainee, apprentice, camp counselor);
- The municipality obtains the proper DLS-issued license or certificate for that trainee program;
- The training is part of a formal, structured program, not just on-the-job orientation;
- The certified sub-minimum rate (often 80%) is paid only during the certified training period.
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If any of these conditions aren’t met, paying a training wage violates Massachusetts wage law—municipalities must then pay the standard $15/hr.
The “bottom line” is that a municipal employer cannot arbitrarily pay new hires or interns less than the full minimum wage. In order to lawfully use a training wage, you must:
- Provide a formal training program.
- Obtain DLS certification for the specific trainee category.
- Pay exactly the certified sub-minimum wage (typically 80% of standard).
FEDERAL TRAINING RATE LIMITATION
As noted above, the federal rules are less restrictive in most instances than those in Massachusetts. However, for the sake of completeness, the federal restrictions will be discussed.
If an employee participates in training that isn’t work-related, an employer is not required to pay them. For example, your team at work may decide to take a self-defense class as a team bonding experience. Since this isn’t work-related, this isn’t training that an employer would be required to pay.
One exception on the federal level permits training wages for workers under the age of 20. For the first 90 days of employment, these youth workers can be paid a training wage that is at a subminimum wage of $4.25 an hour.
The “youth minimum wage” is authorized by the FLSA, which allows employers to pay employees under 20 years of age a lower wage for 90 calendar days after they are first employed. Any wage rate above $4.25 an hour may be paid to eligible workers during this 90-day period.
https://www.dol.gov/general/topic/wages/subminimumwage
Another factor to consider is if the training occurs during or outside of regular working hours. If a training is given directly during business hours and is work-related, it is likely required that the employer pay the employee for their training time.
If an employee performs any kind of work for a company during training, they should be compensated for their time. Productive work can be interpreted in many ways, but should be considered when paying employees training pay.
NOTE; If an employee decides to go above and beyond the required training for their profession, no pay is required. This is referred to as the independent training exception. For example, an employee may decide to get certification to better understand their work and profession. Some employers might still offer to pay employees for their time towards this training out of goodwill, but it is not required.
785.30 of the Electronic Code of Federal Regulations
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JOHN M. COLLINS, P.C.