Probationary employee

A probationary employee is a new hire who is working under an initial evaluation period.

By
Homebase Team
5
Min Read
Hiring & Onboarding

What is a probationary employee?

A probationary employee is a new hire who is working under an initial evaluation period—often called a probationary period—during which their performance, behavior, and fit within the company are closely monitored. This trial period typically lasts 30, 60, or 90 days, though some employers extend it up to six months.

The purpose of probation is to give employers time to assess whether a new employee is a good long-term fit, and to give employees a chance to understand expectations and responsibilities. With Homebase, small businesses can manage hiring, onboarding, and performance tracking to ensure probationary periods are structured, documented, and compliant.

Key features of a probationary period

While probationary employees are typically treated like regular employees in terms of pay and basic rights, the employer may:

  • Delay certain benefits, such as health insurance or paid time off

  • Schedule formal performance reviews at the end of the probation

  • Use the probation as a contingency before confirming permanent employment

  • Terminate the employee more easily if expectations are not met

However, employers must remain compliant with federal and state labor laws, even during a probationary period.

Is a probationary employee still considered “at-will”?

Yes. In most states, employment is considered at-will—meaning either the employer or the employee can end the relationship at any time, with or without cause. A probationary period does not override at-will employment.

However, having a documented probationary period may help clarify expectations and reduce liability when terminating a new hire for performance-related reasons early in their tenure.

Common length of probationary periods

Typical probationary periods are:

  • 30 days: Short and focused; best for entry-level or seasonal roles

  • 60 days: Provides additional observation time for onboarding and training

  • 90 days: The most common length, especially for full-time or skilled roles

  • 6 months: Sometimes used for management or technical positions

Employers should clearly define the probationary period in offer letters, onboarding materials, and employee handbooks.

What employers should evaluate during probation

During a probationary period, employers usually assess the employee’s:

  • Job performance and ability to meet expectations

  • Attendance and reliability

  • Adaptability to workplace culture and processes

  • Teamwork and communication

  • Compliance with policies and procedures

Managers should document all observations and conduct regular check-ins to provide feedback and support.

Legal considerations for probationary employees

Even during a probationary period, employees are entitled to key legal protections, including:

  • Minimum wage and overtime pay under the Fair Labor Standards Act (FLSA)

  • Anti-discrimination and harassment protections

  • State and local paid sick leave laws, where applicable

  • Unemployment insurance eligibility in some cases after termination

  • Worker’s compensation coverage

Employers cannot use probationary status as a reason to bypass labor laws or withhold compensation.

When the probationary period ends

At the end of the probationary period, employers typically take one of the following actions:

  • Confirm the employee’s regular status, making them eligible for full benefits

  • Extend the probationary period, if more time is needed for evaluation (this should be documented and communicated clearly)

  • Terminate employment, if performance or conduct does not meet expectations

Whatever the outcome, it’s important to document the decision and maintain clear records.

Best practices for managing probationary employees

  • Clearly define probation terms in offer letters and onboarding paperwork

  • Set measurable goals and performance expectations

  • Schedule mid- and end-of-probation check-ins

  • Provide regular feedback and support during the trial period

  • Document all performance-related observations

  • Ensure consistent application of policies, including wage and hour compliance

These steps not only create a smoother transition for the employee but also help protect the employer from legal or operational missteps.

How Homebase helps with onboarding and probation tracking

Homebase gives small businesses an all-in-one platform to manage hiring, onboarding, and new employee evaluation. With Homebase, you can:

  • Digitally onboard new hires with required forms and documentation

  • Track hours, attendance, and shift performance from day one

  • Set reminders for probation reviews and training checkpoints

  • Store employee records and performance notes securely

  • Keep communication clear between managers and team members

Explore Homebase Hiring & Onboarding to streamline your probation process, improve new hire success, and manage performance with confidence from day one.

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