It's National Intern Day! Let’s Celebrate the Future Workforce!
On July 25th, we celebrate the contributions of interns who bring fresh perspectives to workplaces across the country. Internships are more than just a stepping stone for upcoming professionals – they provide interns with real-world, hands-on experience with essential skills within their chosen fields.
It is important to note that many internships are unpaid, requiring interns to volunteer their time in hopes of future payoffs. Unfortunately, unpaid internships often deter applicants who lack the financial means to work without pay and, consequently, limit the applicant pool for otherwise appealing internship opportunities. On the other hand, statistics suggest that paid internships tend to attract a more diverse applicant pool.
For companies looking to hire interns, whether paid or unpaid, here are several legal considerations to keep in mind:
Classification: Make sure you understand the legal distinction between paid and unpaid interns. If an internship is to be unpaid, the intern (not the company) must be the primary beneficiary of the internship and the benefits must be akin to those provided in an academic environment.
Compensation: The U.S. Department of Labor takes the position that unpaid interns are not employees under the Fair Labor Standards Act and, therefore, are not entitled to standard employee compensation and benefits. However, an intern who does not meet the criteria to be unpaid must receive the same compensation and benefits as a regular employee.
Compliance: Familiarize yourself with both federal and state regulations to avoid potential legal issues. For example, even unpaid interns are entitled to protections under employment laws. Additionally, an intern displaces a regular employee might ultimately be deemed an employee.
Contract: Execute a formal agreement to help protect both the intern and your business. A well-drafted internship agreement outlines the terms of and expectations for the internship, including the intern’s learning objectives.
National Intern Day reminds us of the valuable contributions that interns make to this country’s
workplaces. It is crucial for companies to understand the legal classification of unpaid interns, provide educational benefits, ensure compliance with employment laws, and maintain clear documentation. By following these guidelines, companies can help create enriching internship experiences, paving the way for a more inclusive and dynamic workforce.
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