No, both 3-way switches do not need to be in the "On" position for a 3-way lighting system to turn the light on; that is the fundamental purpose of a 3-way circuit. Unlike standard single-pole switches, a 3-way switch setup uses two switches working in tandem via two traveler wires to redirect electrical current. Depending on the position of the switches, the light can be turned on or off whether both switches are up, both are down, or in opposing positions. You can troubleshoot lighting operation easily by toggling each switch. You can verify that your system is functioning correctly when changing the position of either switch successfully flips the light state between on and off, proving proper traveler continuity.
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