H. Tuition Assistance

Tuition assistance is an effective way of bolstering employee performance and morale while benefiting the company with better skilled workers. When considering a tuition reimbursement program for your company, be aware of:

• Company objectives in offering the program;
• Employee eligibility, such as who is qualified for reimbursement;
• Limits to the kinds of reimbursable items;
• Using company time to attend courses;
• Proper reporting, including procedures for turning in receipts and the kinds of receipts required for reimbursement;
• Situations when reimbursement is forfeited (e.g., not receiving a "C" grade or better, being fired for cause or receiving an unsatisfactory job performance evaluation before the course is completed).

Counsel Comment #51: Include a sample education assistance program in a company handbook where applicable. Always state that the Human Resources Department retains ultimate discretion to approve requests and specific items to be reimbursed and that the company may, without warning or notice, change the rules of reimbursement or deny reimbursement.

Be aware that employers sometimes are legally obligated to pay employees for attending company classes.

TIP: Many companies encourage employees to take courses of study to improve their efficiency without paying extra wages. The employees typically attend schools which are neither controlled by nor on the premises of the employer. But never make the employee's participation mandatory and never make attendance a condition of keeping the job or gaining a promotion.