An employment probationary period is a critical part of the hiring process. It allows employers to assess new employees and determine if they’re the right fit for the job. It also gives employees a chance to see if the role meets their expectations. But what exactly does this period entail? Are there any federal and state laws governing this area of talent management? And how can HR managers make the most of this time?
In this guide, we’ll walk you through everything you need to know about employment probationary periods, from legal requirements to best practices for managing new hires.
What Exactly Is an Employment Probationary Period?
An employment probationary period is a trial period that new employees typically go through before becoming permanent members of the team. Think of it as a “test run” for both the employer and the employee. Employers use this time to evaluate whether the employee meets performance expectations, fits into the company culture, and is a good fit for the role. Employees, on the other hand, have the opportunity to decide if the job aligns with their career goals and expectations.
The length of the probationary period and what’s expected from the employee during this time can vary by company, but the goal remains the same: to determine whether both parties are satisfied with the arrangement.
For employers, having a probationary period for employment helps reduce the risk of hiring someone who doesn’t ultimately work out. For employees, it offers a sense of security by ensuring they aren’t stuck in a job that doesn’t fit. At the end of the probation period, the employee may either be confirmed as a permanent member of the team, extended for further evaluation, or let go if the fit isn’t right.
Is There a Federal Employment Probationary Period Law?
There aren’t actually any federal laws specifically governing the employment probationary period. However, several important federal regulations that apply to employees during this time. These protections ensure probationary employees are treated fairly.
One key law is the Civil Rights Act of 1964, which prohibits employers from discrimination based on race, color, religion, sex (including pregnancy, sexual orientation, or gender identity), national origin, age (40 or older), disability and genetic information. This means that even during the probationary period for employment, employees can’t be treated unfairly because of these factors.
Another significant law is the Americans with Disabilities Act (ADA). If an employee has a disability, the employer must provide reasonable accommodations to help them perform their job, even if they are still in their probation period. This ensures that probationary employees receive the same support and opportunities as permanent employee it terms of adapting the work environment or tasks to fit their needs.
Lastly, the Fair Labor Standards Act (FLSA) ensures probationary employees are paid fairly, covering minimum wage and overtime requirements. These protections apply to everyone, regardless of employment status.
Essentially, while there are no federal rules about the exact length or structure of an employment probationary period, the laws above ensure fairness and protect employees’ rights throughout their probation.
State Employment Probationary Period Protections
Employees on probation in all states have basic rights from day one. These include minimum wage, sick pay, time off, and protection from discrimination and wrongful dismissal. Even if someone is on probation, they can’t be denied these fundamental protections under both federal and state law.
In states with at-will employment laws, employers can terminate employees at any time during the probation period, with or without cause. But even in these states, probationary employees still have the right to be treated fairly and cannot be fired for discriminatory or retaliatory reasons.
Montana is the only state that requires a probationary period for new hires. However, while other states don’t mandate probation periods, many still offer strong protections for employees during this time. Employers may have more flexibility in these cases, but they cannot fire someone for unfair reasons like discrimination.
Let’s start by looking at Montana’s rules, then we’ll explore other a few other states that offer these protections during the probation period.
Montana’s State Employment Probationary Period Law
Montana is unique when it comes to the employment probationary period. Unlike most states, Montana doesn’t follow the typical at-will employment model during probation. Instead, the law requires employers to have “good cause” to terminate an employee. In other words, employers must have a legitimate, documented reason for ending the employment relationship, even if the employee is still in their probation period.
Specifically, the Montana Wrongful Discharge from Employment Act (WDEA) protects employees by ensuring they can’t be dismissed without just cause. During the probationary period for employment, employers must show evidence of poor performance, misconduct, or a failure to meet job expectations before terminating an employee. If an employee is let go without this evidence, they have the right to challenge the termination.
This law provides more job security to probationary employees in Montana than what you might find in other states. Even though the probationary period is meant for evaluating new hires, Montana’s protections ensure terminations aren’t based on discriminatory or retaliatory reasons.
For employers, this means they must be careful during the hiring process and ensure that any probationary period is clearly communicated to new hires. Employers must also make sure they track performance and have clear documentation to justify any termination decisions during the probationary period. This level of accountability sets Montana apart from states with more flexible at-will employment rules.
California
California also offers strong protections for employees during the employment probationary period. Even though the state follows at-will employment laws, employers cannot fire probationary employees for unlawful reasons, such as discrimination based on race, gender, or disability.
The Fair Employment and Housing Act (FEHA) plays a crucial role here. It prohibits discrimination based on a variety of protected characteristics, including race, gender, sexual orientation, disability, age, and more. This means that even during the probationary period, employers cannot make decisions about hiring, firing, or job assignments based on these factors. Essentially, while employers in California can end the probationary period at any time, they must still have a legitimate, non-discriminatory reason for doing so.
Finally, California employment law requires employers to provide workers’ compensation benefits from day one, ensuring probationary employees are treated fairly when it comes to job safety.
New York
New York State employment law also offers employees strong protections, even during their employment probationary period. For instance, the New York State Human Rights Law prohibits discrimination based on race, gender, disability, and other protected categories. These rights extend to employees during the probationary period for employment. Employers can’t fire an employee on probation for discriminatory reasons or retaliation.
Texas
Texas is another state that follows at-will employment, so employers here can end an employment probationary period at any time, for any reason, or no reason at all. However, as with all the above, employers can’t fire probationary employees for discriminatory reasons. Specifically, Texas labor law protects employees from discrimination based on race, gender, age, and other factors. Even during the probationary period for employment, employers must respect these protections.
While Texas doesn’t offer as many safeguards as other states, employees still have basic rights. If a probationary employee believes they were wrongfully terminated, they can take legal action.
Illinois
In Illinois, probationary employees are protected by the Illinois Human Rights Act. This law prevents employers from firing probationary employees based on race, gender, sexual orientation, or any other protected category. Employers must treat probationary employees fairly during the employment probationary period. If a probationary employee feels they’ve been fired for an illegal reason, they can challenge the termination.
Massachusetts
Finally, the Massachusetts Fair Employment Practices Act protects employees from discrimination based on race, gender, disability, and other protected characteristics. Employers can’t fire employees for discriminatory reasons during the employment probationary period. Massachusetts also requires employers to provide paid sick leave to probationary employees.
How Long Does an Employment Probationary Period Last?
Generally, a 90-day probationary period is pretty standard in the U.S., but it can vary based on the company, industry, and role. A shorter probationary period (e.g., 30 or 60 days) might be suitable for roles with relatively straightforward responsibilities, while a longer probationary period could be appropriate for positions that require more time to assess, such as leadership or technical roles.
Most HR managers set probationary periods that allow enough time to observe the employee’s performance and integration into the company culture. A 90-day probation period is common because it provides a full quarter to evaluate the employee’s contribution to the business, but it’s not so long that it drags out the uncertainty.
During this period, employers should have regular one-on-one meetings and feedback sessions to ensure there are no surprises at the end. These evaluations allow both parties to address any concerns or challenges early on. Additionally, if the employee has met all expectations, the probationary period may be concluded early, transitioning the employee to permanent status.
How Does It Work?
An employment probationary period is structured to allow both the employer and the employee to assess the suitability of the job. For the employer, it’s a time to evaluate job performance, reliability, teamwork, and cultural fit. For the employee, it’s an opportunity to see how well they adapt to the role and whether the job meets their expectations.
During the probation period, employees typically undergo onboarding, which includes training and orientation. They’ll be expected to perform the duties outlined in the job description, but there may be more frequent performance reviews to ensure they are on track.
For employers, this is the time to provide consistent feedback. The goal is not only to assess the employee’s performance but also to help them improve where necessary. Setting clear expectations at the outset is key. Employees should know exactly what’s expected of them in terms of tasks, behavior, and performance standards. If an employee struggles, this feedback allows them to course-correct before their permanent status is determined.
Onboarding During Probation: Setting New Hires Up for Success
As we just mentioned, onboarding is a crucial part of the employment probationary period. It’s the first step in setting new hires up for success. A smooth onboarding process helps employees feel confident in their role and start contributing faster. Clear communication is crucial here. Make sure new hires understand their goals, the company culture, and how they fit into the bigger picture.
You should also make the onboarding process as welcoming as possible. Introduce the new starter to their team, provide necessary resources, and offer training to get them started. As they move through the probationary period, check in regularly to offer feedback and guidance. The goal is to create an environment where the employee feels supported, understood, and empowered to do their best work. If onboarding is done right, it sets the stage for a successful probationary period and helps employees settle in quickly.
Managing Performance During Probation: Best Practices
It’s vital that you track and manage employee performance during their probationary period to make sure that all expectations are aligned.
Here are some best practices for managing performance during the employment probationary period:
- Set clear expectations upfront. Define the goals, responsibilities, and performance metrics the employee must meet during the probationary period.
- Provide regular feedback. Don’t wait until the end of the probation period. Offer constructive feedback throughout the process to help the employee improve.
- Be consistent. Make sure all probationary employees are held to the same standards. Fairness and consistency are key to creating a positive work environment.
- Be transparent. Keep the employee informed about their progress. Let them know where they’re excelling and where they need to improve.
- Offer support. If an employee is struggling, offer training, mentoring or additional resources to help them succeed.
- Document performance. Keep records of performance reviews and feedback. This will help justify decisions made at the end of the probation period.
- Give room for improvement. The probationary period is also about growth. Offer opportunities for the employee to make adjustments and improve their performance before making any final decisions.
What Happens After the Probation Period Ends?
At the end of the employment probationary period, you’ll have some important decisions to make. The employee could become a permanent member of the team, you may choose to extend their probation, or you could decide to part ways.
If the probationary period has been successful, you’ll want to confirm their position and continue to support their growth. Make sure to let the employee know they’ve successfully completed their probationary period and are now a permanent part of the team. You can do this in a casual meeting or with a simple letter, but be sure to clearly tell them they’ve passed probation and confirm their new status. It’s a nice moment to celebrate their success and make them feel valued as a full member of the team.
If things aren’t working out, it’s time to discuss next steps. For instance, a valid reason for dismissal during the probationary period could be insubordination. If an employee consistently refuses to follow instructions, ignores company policies, or displays defiant behavior, it can negatively impact their performance and the team. Depending on how serious the issues are, you could either provide additional support at this point or choose to end the employment relationship. Whatever you decide to do, make sure you do it in a respectful and professional way. Open, honest communication will help manage expectations and reduce uncertainty.
In some cases, you might choose to extend the probationary period to give the employee more time to improve. Be clear about the goals and expectations during this extension, and make sure they have the support they need to succeed.
Ultimately, how you handle the end of the probationary period can set the tone for the future of the employee’s relationship with the company. Whether they stay or go, clarity and transparency are key to making the transition smooth.
Key Tools to Support the Employment Probationary Period
Factorial’s onboarding and performance management software make it even easier for you to manage the probationary period for employment. Our solution provides you with everything you need to support new hires and track their progress.
Here’s how Factorial helps you during the probation phase:
- Onboarding checklists and automation. Factorial’s onboarding software offers customizable checklists to ensure new hires complete essential tasks and receive necessary training. This helps employees on probation start off on the right foot.
- Performance tracking and evaluation. Keep track of new hire performance easily. Set goals, monitor progress, and offer feedback in real time. This keeps everyone aligned with expectations and helps probationary employees improve.
- Employee feedback and surveys. Factorial makes it easy to collect feedback from both managers and employees. Use regular check-ins, onboarding surveys and performance reviews to guide probationary employees through their time with the company.
- Documenting and storing records. Factorial helps you store all performance data in one place. Keep a clear record of feedback, reviews, and training to ensure you make fair and informed decisions at the end of the employment probationary period.
- Customizable goal setting. Set clear, measurable goals for probationary employees. Track their achievements and provide actionable insights to help them succeed.
With Factorial’s onboarding and performance management tools, you can manage the employment probationary period smoothly and fairly, ensuring new hires get the support they need to succeed.
