An employee has 41 hours on her timesheet. Through a grant, 4 of these hours were not hours worked, but spent in school. The employer is to pay for these hours and then be reimbursed by an outside source. (Pennsylvania)

Should this employee receive 1 hour of overtime pay?

What type of school/training? Did the training occur during her regular work schedule? It's possible that the hours may be deemed "hours worked" under the FLSA, which would make this a moot point.

I am told that the grant is actually to allow her to leave work and hour early to travel to her class.

She is a daycare worker and the schooling is somehow related. The employer does not usually pay for employees to attend school. This is just a special circumstance in which a grant was received for this purpose.

Reason I'm asking is that all four of the criteria listed below must be true in order for the training to be excluded from hours worked. If any ONE of them is false, then it is hours worked and must be included as such when determining overtime hours.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_785/29CFR785.27.htm

Thanks for the link. That is very helpful. I am sure qualifications (b) and (d) are met, but (a) sometimes is not met. Regarding (c), the course work is surely related to her job somehow, but the knowledge is beyond what is necessary for her job. So I am going to interpret that as "not directly related to the employee's job" and consider (c) to have been met.

But since (a) was not met, the hours should be counted as worked and the employer should be paying OT.

Thank you for your advice.