To:         CALSAGA members

From:      Jeff Flint, Association Manager

Re:         Opinion issued by DLSE on whether pre-employment training time is compensable

Date:      October 1, 2007

In early July, CALSAGA wrote a letter to Vicki Bradshaw, Secretary of the Labor & Workforce Development Agency requesting clarification on whether or not pre-employment state mandated security officer training time is compensable.  Since the AB 2880 training standards were implemented in 2004, there has been some confusion on whether or not employers were required to pay wages.

On August 29, Angela Bradstreet, the State Labor Commissioner, responded to our letter on behalf of Secretary Bradshaw, and made some important pronouncements.  In particular, the opinion issued from Ms. Bradstreet was that “time in the pre-employment training program does not require wage compensation.”  Undoubtedly, this opinion goes a long way in assisting our members in complying with California wage and hour laws.

Click here to download the five page analysis.

One of the key excerpts from the letter is as follows:

“The fact that employment may be offered after completion of the specific training provided by the private security operator does not itself transfer the relationship to an employee – employer relationship.  And while there is a conceivable general benefit to the private security operator in that it may offer employment to individuals upon successful completion of the training and otherwise meeting hiring requirements based upon their exposure to such prospective employees, there is no unfair economic benefit derived from work during the period of training the individuals.  [Subsequently], mandatory training programs do not appear to qualify as an employee – employment relationship because there is no work performed for the private security operator, no wages or salary is received, and the individuals are not listed in the employer’s payroll (B & P Code 7580.9).

Obviously, you should share a copy of this letter with your own labor attorneys to confirm how this opinion applies to the facts and circumstances of how you do your hiring and training.  However, we believe it will be very helpful in clarifying state law.

Finally, CALSAGA appreciates the effort and time invested by Ms. Bradstreet in issuing this opinion and we definitely think it will assist us in future relations with the Division of Labor Standards Enforcement (DLSE).  If you have any questions or need additional clarification, please contact William Hodges at (916) 930-0552 or via email at whodges@calsaga.org.