Continuing Education: US

This Continuing Education policy explains how your organization can support employees' professional development through reimbursement for certain job-related learning opportunities. Employers with a program like this publish a policy because it sets clear expectations on what may be covered, how eligibility and department budgets can affect reimbursement, and why employees should get approval before enrolling.

The History Behind Continuing Education Policies in the US

Continuing education became a recognizable workplace benefit once professional licensing boards started tying paychecks to proof of ongoing training, and employers decided ad hoc decisions each time someone asked for tuition money were a bad idea. Many roles in healthcare, accounting, engineering, insurance, and financial services require continuing education credits to keep a license active, and employers began treating reimbursement as a sensible Benefit or Perk. Colleges and third-party training providers also expanded adult and online programs in the late 1990s and 2000s, which made "course reimbursement" requests more common and harder to manage informally.

Federal tax rules influence these programs, too. Internal Revenue Code Section 127 let employers offer tax-free educational assistance (up to a statutory annual cap) if the program met specific requirements, including a written plan and nondiscrimination rules. Section 132 also mattered because some job-related education can qualify as a working condition fringe, but the line gets technical when education looks like it qualifies someone for a new trade or business. A clear policy became the easiest way to keep reimbursements predictable and to reduce the risk that well-intended payments turn into taxable wages.

Wages & Hours law also shaped the modern approach. The Fair Labor Standards Act and Department of Labor guidance made employers pay closer attention to when training time counts as hours worked, especially for non-exempt employees and mandatory programs. Employers responded with approval steps, budget controls, and documentation habits that separate optional development from required training and keep reimbursement decisions consistent.

Which Law is the Continuing Education Policy Meant to Comply With?

There is no federal law that specifically requires a Continuing Education policy for US-based employees. We include this policy anyway because it's a common program many employers have, and a policy is a common best practice that answers employee FAQs and sets clear expectations.

How to Write a US-Specific Continuing Education Policy

• Start with "why" and introduce the concept.
• Define what types of continuing education your organization may support through reimbursement.
• Explain that coverage, eligibility, and approvals can vary based on role and budget.
• Require employees to confirm eligibility and the request process before enrolling.

When to Include this Policy in Your Employee Handbook

The law does not require you to publish a policy or issue a specific notice. That said, you still have to comply with the requirements that apply to you as an employer. 

This is a "depends on your workplace" policy. Include it if you offer the benefit, operate in a setting where this comes up, have a state-specific rule that differs from your national approach, or you've had issues in this area before. If you already have a clear all-employee policy that covers the same ground (and it meets US's requirements), you may not need a separate policy here. 

Other Considerations

None.

Exceptions

None.