Internship programs can provide advantages for both employers and interns, but many internships risk running afoul of state and federal laws. Employers can end up on the hook for significant amounts in unpaid wages, employment taxes, and penalties. To avoid these unintended consequences, review the checklist below.
You should make sure your program:
- Is similar to training that would be provided in an educational environment.
- Predominantly benefits the interns.
- Provides interns with skills they can use in multiple employment settings rather than only in the employer’s operation.
- Ensures interns do not perform the routine work of the business on a regular and recurring basis.
- Does not result in the displacement of regular employees.
- Does not merely augment the existing workforce during specific time periods.
- Puts interns under the close supervision of existing staff.
- Provides no immediate advantage to the employer from the interns’ activities.
- Impedes the employer’s operations on occasion.
- Runs for a fixed length of time, established before the internships begin.
- Does not entitle interns to employment after their internships conclude.
- Makes clear to interns that they are not entitled to wages for their time during the internships.
Webinar coming this Thursday, May 15, 2014
10:30 a.m. to Noon Pacific
Summer is nearly here, and throngs of eager students will be knocking down your door for internships and seasonal employment opportunities. Are your pay practices ready?
According to a recent survey, some California tech companies pay interns more than $6,200 a month. No complaints there! Of course, that’s not the reality for most employers, and recent intern lawsuits resulting from employers misunderstanding federal and California minimum wage requirements and overtime regulations are eye-popping.
So what does your intern and seasonal employee program look like? Are you up to speed on state and federal obligations—so you don’t end up on the receiving end of a complaint? Now is the time to "get schooled" on federal and California wage and hour obligations, as well as DOL and California Division of Labor Standards Enforcement tests for seasonal employees and interns.
Join us for this 90-minute interactive briefing, and learn the crucial laws and regulations that govern the employment of nonexempt workers, including interns and seasonal employees. And learn the specific requirements under the FLSA that permit you to bring on unpaid interns.
- Factors to consider before you classify an internship as unpaid, so you don’t violate the FLSA or the California Labor Code
- The ins and outs of offering academic credit or other benefits instead of or in addition to pay
- Terms and conditions to include in any written agreements concerning internships within your organization
- How workers’ compensation and other insurance coverage may be affected when you hire interns
- Whether interns could potentially be eligible for unemployment benefits at the termination of their assignment
- What to discuss with colleges, universities, and other schools when setting up your internship program
- How to tell if what you’re offering is an internship or an apprenticeship/co-op learning opportunity—and what that distinction means
- The benefits and drawbacks of structuring internships so they turn into full-time employment
- Whether it is legal to have a nonstudent intern working for your organization
- Legal pitfalls to watch out for when it comes to compensation and benefits decisions for interns and seasonal/temporary employees here in California
- And much more
In just 90 minutes, you’ll learn the latest California and federal wage and hour obligations concerning interns and seasonal employees.
Don’t miss it—claim your spot today!
Download your copy of Paying Overtime: 10 Key Exemption Concepts today!
The problem with meeting the criteria above is that it will make the program less attractive to potential interns. For example, if they can’t perform routine work on a regular basis, what can they do? Some of the criteria also make it unappealing for employers.