This month’s expert is
Diana Gregory, a senior human resources specialist at the
professional employer organization and human resources outsourcing firm.
Employers often have
questions about reimbursement of pre-hire travel expenses, such as interview travel
expenses. And even if no travel is involved, pending hires are sometimes asked
to do some form of “work,” such as mandatory training or attending a company function.
Must this time be compensated?
A L I F O R N I A W A G E & H O U R A D V I S O R
Travel Expenses for
Applicants
No specific law requires
employers to cover applicants’ travel expenses. That said, it may be a smart business
decision to reimburse such expenses to get the right people aboard, especially
for positions requiring a high degree of knowledge, skills, and experience that
can often only be found by tapping a national or regional applicant pool. So,
you might cover air and rental car travel, lodging, and meal costs. (Note that when
current employees seek transfer or promotion opportunities, you should
reimburse their expenses.)
Pre-Hire ‘Work’
For the most part,
requiring a pending hire to undertake unpaid training that is company-specific
or to attend a company meeting or function likely violates the federal Fair
Labor Standards Act and a number of California Labor Code provisions. There
would also be possible workers’ compensation coverage issues, not to mention
hire date discrepancies. In general, the only exception to this is that you can
require high-level executives to participate in pre-hire training or to attend
a company meeting. Because this is a complex issue and a difficult area of
labor law, employers should consult appropriate legal counsel before
establishing pre-hire requirements.
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Tips for Success
For any given recruiting
effort be consistent in your reimbursement practice with each external and/or
internal applicant for that position. Also, ensure that all applicants are
informed up front about all pre-employment requirements (including obtaining
signed authorizations for certain pre-hire tests and background checks), what
will and will not be reimbursed, and how that process is handled.
As an aside, note that
any pre-hire tests, even if reliable and valid, and even if reimbursed, may
trigger numerous liability risks that should be fully discussed with an employment
attorney. For example, the federal Americans with Disabilities Act and the
California Fair Employment and Housing Act both impose strict limits on using
information obtained from physical examinations and inquiries.