Paying Trainees

[Tennyson]

I hope I can give you enough information regarding this question......We have an apprenticeship program for Sprinkler Fitters.  We have a tremendous amount of turnover in that position and we're trying to find a way to weed them out before we hire them.  Is there any provision in the law that would allow a company to have someone work for them in a trainee position for a period of time - say 1 or 2 weeks - without actually hiring them?  We'd like to avoid the cost of hiring - ie, drug test, background, uniforms, etc. until we know they're going to stick it out.  I remember reading something about UPS or FEDEX doing something like this with their drivers??

Any help you can give me would be appreciated.

Thanks,

Nancy

ANSWER: Hi Nancy -- Your question is one that troubles many employers.  I can answer your question in detail if you could provide me with the state in which your business is located.  State laws differ from federal laws and often greatly change the law in regard to trainees.

However, what I can tell you, at this point, is that you could hire the individuals, conditionally, contingent upon their successful completion of training, drug tests, etc.  The real issue is whether you have to pay them, or not.  For me to answer this part of your question, it is critical that I know your state, so I can advise you properly according to your state's provisions.

Most states do require payment for training.  However, you do not have to pay the regular rate, but can pay minimum wage rates.  Before you explore such an option, send me your state and I will outline your options in detail and make sure that your company remains legally compliant.

Thank you for contacting me.  Dena

---------- FOLLOW-UP ----------

Dena,

Thank you for your quick response.  We are in Virginia, North Carolina, and South Carolina.

Thanks for your help.

Nancy

[ailwyn]

Hi Nancy -- Below I have listed the wage and hour laws as they apply to each state.  I want to preface the information by advising you to call each state's department of labor to ensure you are not violating wage and hour laws.  Violations can result in steep fines.  However, a theme that runs through each state is that you should notify employees, in writing, before they start training of your pay policy and that during training, employees are paid minimum wage.

Here is a summary, per state:

Virginia:

An employer can reduce an employee's pay so long as the reduction does not fall below minimum wage.  The employer must notify the employee, in writing, of the reduced pay before being allowed or required to perform work.  The employee has the right to accept the reduced rate or quit.  State minimum wage is $6.55.

North Carolina:

Employers are required to pay the state minimum wage, $6.55 per hour.  I advise you to follow Virginia procedures in NC.

South Carolina:

State law requires employers of 5 or more employees to notify employees in writing at the time of hiring of the wages agreed upon and the time and place of payment.  SC does not set a minimum wage requirement, thus federal minimum wage applies in this state.

I hope this helps.  Please let me know if you have further questions.

Best,

Dena