Yesterday’s Advisor detailed the six tests that internship arrangements must pass for an internship to be unpaid. Today, we will discuss internships that le2615ad to permanent employment, plus an internship checklist.
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Again, we turned to HR.BLR.com® for guidance.
Unpaid internships generally should not be used by the employer as a trial period for individuals seeking employment at the conclusion of the internship period. If an intern is placed with the employer for a trial period with the expectation that he or she will then be hired on a permanent basis, that individual generally would be considered an employee under the Fair Labor Standards Act (FLSA).
Checklist for Unpaid Internship Programs
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, 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 that is established before the internships begin;
- Does not entitle interns to employment after their internships conclude; and
- Makes clear to interns that they are not entitled to wages for their time during the internships.