Yes, generally, employees are entitled to be paid for the time spent on onboarding activities.
Onboarding is a critical phase for new hires, encompassing various tasks, training sessions, and administrative processes designed to integrate them effectively into the company. The expectation is that this time is compensated, in accordance with federal labor laws.
Understanding Onboarding Compensation
The Fair Labor Standards Act (FLSA) is a foundational federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting both private and public sector employees. Under the FLSA, the Department of Labor (DOL) broadly defines employment to include individuals who are “suffered or permitted to work.” This comprehensive definition means that if an employer knows, or has reason to believe, that an individual is performing work for the company’s benefit—even if not explicitly directed—that time is typically considered compensable work time.
This principle directly applies to onboarding. Any time a new employee spends completing tasks, attending required sessions, or receiving training that benefits the employer is generally considered compensable work.
What Onboarding Activities Are Compensable?
Most activities required during the onboarding process are viewed as work and must therefore be compensated. These commonly include:
- Orientation Sessions: Attending general company orientations, learning about the company's mission, values, and culture.
- Paperwork Completion: Filling out essential employment forms, tax documents (e.g., I-9, W-4), direct deposit forms, and benefits enrollment documents.
- Mandatory Training: Participating in job-specific training, safety training, compliance training (e.g., harassment prevention, data privacy), and tutorials for company software or systems.
- Account and Workstation Setup: Time spent setting up work email accounts, computer access, and other necessary digital or physical tools.
- Policy Review: Reading and understanding company policies, procedures manuals, and employee handbooks.
- Structured Introductions: Meeting colleagues, team members, and supervisors as a planned part of the onboarding process.
Here’s a summary of common onboarding activities and their general pay status:
| Onboarding Activity | Pay Status (General Rule) | Explanation |
|---|---|---|
| Orientation sessions | Paid | Time spent learning company specifics, policies, and culture is generally compensable. |
| Completing HR paperwork (e.g., I-9, W-4) | Paid | Essential administrative tasks required to establish employment. |
| Job-specific training & skill development | Paid | Time spent acquiring knowledge or skills directly related to the job role and employer's operations. |
| Compliance training (e.g., harassment, safety) | Paid | Mandatory training sessions required by law or company policy for all employees. |
| Setting up workstation/computer accounts | Paid | Any time spent preparing to perform job duties or gain access to necessary work tools. |
| Reviewing company policies | Paid | Time spent understanding the rules and guidelines governing employment. |
| Truly voluntary, non-job-related social events | Potentially Unpaid | If an event is entirely voluntary, outside of work hours, and no productive work is performed, it may not be compensable. |
Note: The key determinant for compensability under the FLSA is whether the activity is for the employer's benefit and is mandatory or "suffered or permitted to work."
Legal Framework and Employee Rights
Employers are legally obligated to compensate employees for all hours worked, and this includes time spent on onboarding. Failure to do so can result in violations of federal and state wage and hour laws. The Department of Labor provides clear guidance on these matters, affirming that time spent by an employee for the employer’s benefit is generally compensable. This ensures that new hires are fairly compensated from the very beginning of their employment relationship. For more detailed insights into legal requirements regarding employee compensation, resources such as Burruezo & Burruezo, PLLC offer valuable information.
Practical Advice for New Hires
To ensure you are properly compensated for your onboarding time:
- Track Your Hours: Maintain a detailed record of the dates, times, and specific activities you engaged in during your onboarding period.
- Clarify Expectations: Before you start, or early in the process, ask your employer or HR representative about the company's policy on onboarding pay.
- Review Your Pay Stub: Carefully examine your first pay stub to confirm that all onboarding hours are accurately reflected and paid.
- Understand Your Rights: Familiarize yourself with the basic principles of the FLSA regarding compensable work time.
In summary, if you are undergoing onboarding for an employer, the time you dedicate to activities that are part of the process and benefit the company should be paid. This is a fundamental right protected by labor laws.
