Questions
A company wishes to implement an internal training course for its employees. They need to make sure that the training program is in compliance with both state and federal laws and regulations, as they operate in multiple states. Please answer if:
1) There are any state or federal requirements and/or regulations likely to impact the internal training course?
2) It is possible that the internal training course may be subject to regulation as an educational institution, such as a “school,” “college,” or “university?”
Short Answers
- Probably Not. Most state and federal requirements and regulations regarding training and education turn upon the issue of whether the program is seeking government funding. Often, only when a program seeks and receives government funding, such as grants or student financial aid, is the program required to meet certain criteria and follow certain rules. Therefore, an employer who implements and funds their own employee training is not required to follow such rules.
- Probably Not. Very few companies fit the criteria of a “school” or “eligible school.” Thus, a company is not required to establish “degree approval” or any formal certification in order to implement the training program.
Analysis
Generally, certification is the process of publicly attesting that a specified quality or standard has been achieved or exceeded. Certifications may be informal, such as the Good Housekeeping Seal of Approval or Oprah’s Book Club. To the contrary, formal and professional certifications are a voluntary process in which a professional organization acknowledges compliance with a recognized standard and grants the certification. Accredited certifications are also a voluntary process in which institutions, agencies, and educational programs (ie: institutions which grant degrees or certificates or diplomas) are evaluated and granted public recognition for having met certain established qualifications or standards. In any matter, certification is nearly always done by a non-governmental agency. Therefore, based upon these general definitions alone, it is unlikely any company would be required to undergo any involuntary regulation.
In regard to education requirements, the United States Code mainly focuses on financial assistance, grants, and education for individuals with disabilities. See generally 20 U.S.C.A. §§ 1-10013). Instead, the individual states regulate education and the federal regulations are specific to a programs receipt of federal funding. Therefore, state laws will be most relevant to the determination of whether a company’s training program would be classified as a school and thereby required to maintain certain educational standards. While each state will have its own individual laws regarding what is considered a “school” (for purposes of regulation), an analysis of Minnesota law leads to the conclusion that business training programs do not classify as a school.
In Minnesota, schools, colleges, and universities are subject to both Minnesota laws and Minnesota administrative rules. Under Minnesota statutes governing higher education, entities which classify as “schools” are: (i) prohibited from granting a degree unless it is approved by the proper Minnesota office; (ii) prohibited from using the name college or university without approval by the office; and (iii) must register with the office annually. Minn. Stat. § 163A.63-.65.
Under Minn. Stat. § 136A.62 subd. 3, a “school” means:
- Any partnership, company, firm, society, trust, association, corporation, or any combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary education institution; (ii) is, owns, or operates a private, for-profit postsecondary education institution; or (iii) provides a postsecondary instructional program or course leading to a degree whether or not for profit;
- Any public or private postsecondary educational institution located in another state or country which offers or makes available to a Minnesota resident any course, program or educational activity which does not require leaving the state for its completion; or
- Any individual, entity, or postsecondary institution located in another state that contracts with any school located within the state of Minnesota for the purpose of providing educational programs, training programs, or awarding postsecondary credits or continuing education credits to Minnesota residents that may be applied to a degree program.
Based upon the Minnesota statutory definition of “school,” most businesses are not schools. If the program is limited to training employees as part of their business and not as part of an educational institution, and the participants do not receive educational credits or a degree upon completion of the training, it is unlikely a company would be in violation of the statutory prohibitions.
Minnesota’s administrative rules also lead to the conclusion that most business’ training programs are outside the scope of governmental regulation. Chapter 4830 of the Minnesota Rules establishes a Minnesota Office of Higher Education with the primary purpose to determine the eligibility of institutions to participate in student financial aid programs administered.
First, scope of Chapter 4830 is not within the present issue. The company’s primary concern is whether requirements exist in regard to the substance of their training, not whether they can receive funding or student financial aid. Second, even if the business wished to participate in a Minnesota aid programs, such programs are only available to “eligible schools” and most companies do not qualify. See Minn. R. 4830.0300.
Companies are unlikely to be required to undergo professional certification or an accreditation by state or federal law through the creation of their training programs. However, the companies will still be subject to wage and labor laws. Thus, they will have to pay employees participating in the training at least minimum wage per hour for all hours the employees that are required to participate in the training.
Conclusion
Based on current state and federal law, a training program being offered by an employer in which the employee receives an informal certificate is not an educational program subject to government regulation. So long as the training program is not part of state or federal funding, the employer may conduct the training within their discretion and as they believe necessary.