Do Employers Have to Pay Employees for Onboarding?

Yes, employers must pay employees for onboarding. Under the Fair Labor Standards Act (FLSA), time spent on onboarding—including completing paperwork, attending training, and meeting with HR or managers—is considered compensable work time. Since onboarding is typically mandatory, takes place during business hours, and directly relates to job duties, employees must be paid for their time.

Now, let’s break down the legal requirements, HR best practices, and ways to streamline onboarding for a seamless new hire experience.

What Is Employee Onboarding?

Employee onboarding is the structured process of integrating new hires into an organization. It includes everything from completing new hire paperwork to meeting colleagues and learning about company culture. A well-designed onboarding process ensures employees receive the knowledge, skills, and expectations needed to succeed in their roles.

Why Is Onboarding Time Paid?

• On the employer’s premises,
• On duty, or
• At a specific work location.

Since onboarding is a required activity that helps employees perform their job, it qualifies as paid work time under the law.

When Is Onboarding Not Paid?

• The event occurs outside normal business hours.
• Attendance is completely voluntary.
• The event is not directly job-related.
• No other work is performed.

If all four conditions apply, employers are not required to pay employees. However, because onboarding generally includes mandatory training and paperwork, it must be paid.

Who Handles Employee Onboarding?

• Ensuring completion of legal paperwork (e.g., I-9, W-4 forms).
• Maintaining consistency in the onboarding experience.
• Supporting managers with training and integration.

• Welcoming new hires and setting clear expectations.
• Providing job-specific training and mentorship.
• Ensuring employees feel engaged and supported.
  
  

How to Streamline the Onboarding Process

A structured onboarding experience helps employers increase retention and reduce time-to-productivity. Here’s how HR teams can optimize onboarding:

1. Use an Onboarding Checklist
An onboarding checklist ensures a consistent and structured introduction to the company. It helps HR track onboarding progress while identifying inefficiencies. Check out our full onboarding checklist here.

2. Digitize Onboarding with an HRIS
Using a human resources information system (HRIS) eliminates paperwork, streamlines document management, and speeds up onboarding. Automated onboarding also improves compliance and efficiency.

3. Start Onboarding Before Day One
An HRIS allows new hires to complete paperwork before their first day, reducing first-day stress and helping them focus on their role immediately.

4. Implement a 30-60-90 Day Plan
A 30-60-90 day plan sets clear goals and expectations for a new hire’s first three months. It provides a structured roadmap for training, projects, and key milestones.