You might be pondering whether the hours spent on employee onboarding process should hit the payroll. This is a typical puzzle for many business owners during understanding employee onboarding.
You're preparing to welcome new team members, and a common question arises: Should onboarding hours be paid?
It's a frequent concern among employers—and fortunately, the Fair Labor Standards Act (FLSA) offers clear guidance. According to the law, onboarding time must be compensated.
In this post, we’ll explain your legal obligations around onboarding pay, explore the risks of non-compliance, and share tips for building a seamless, legally sound onboarding process.
Employee onboarding is more than signing forms—it's the process where new hires are introduced to their roles, responsibilities, workplace culture, and coworkers. This period often includes:
The goal is to make employees feel welcome, informed, and equipped to succeed. Effective onboarding improves retention, productivity, and job satisfaction from day one.
The FLSA makes it clear: Onboarding is compensable work time.
Failing to comply with these rules not only violates federal law, but also undermines employee trust.
Skipping payment during onboarding can result in serious consequences:
Fair and timely compensation reinforces your commitment to transparency and compliance.
Here’s how to create an onboarding process that’s both legally sound and operationally effective:
Paying employees during onboarding isn't optional—it's a legal requirement.
The FLSA mandates that all time spent in mandatory training or onboarding must be paid at or above minimum wage. Overtime rules also apply if the hours exceed 40 in a week.
Getting onboarding right—both logistically and legally—helps establish trust, enhances employee experience, and keeps your company compliant from the start.
Yes. Onboarding, including training and orientation, counts as paid time under the FLSA.
No. Even if an employee says they don't mind, you are legally obligated to pay them for required onboarding activities.
Yes. All mandatory onboarding and training activities are considered compensable work hours.
Besides wages, onboarding time is subject to payroll taxes, unemployment insurance, and other employment-related benefits.
Yes. Employees must be paid from their first minute on the job—including any trial or probationary phase.
No. Remote onboarding is treated the same as in-person work. Employees must be paid for all required remote onboarding activities.
