Courts consider several factors to determine whether a worker is an employee or an independent contractor for purposes of the FLSA. When do must summer internships typically start? While hiring international talent could be exciting, it can be a cumbersome process as well if an employer is unaware of the legalities and other requirements that might come along the hiring process. The student gains valuable work experience and a chance to prove that they’re worth considering for full-time employment. Is the intern doing the same work that other employees typically Improper treatment of an intern can lead to the same employment practices liability claims … Can students work for multiple companies at one time? Is an intern an independent contractor? When it comes to internship programs, employers often have many legal and practical questions that they need to answer before they can even start, The federal Fair Labor Standards Act (“FLSA”) is the federal wage and hour law that sets forth the legal requirements for compensation for employees, including. Consistent with the requirement that an unpaid internship is primarily for the benefit of the intern, and not the company. If there is, an expectation of compensation or a perceived right to a job at the end. The core issue around compensation while hiring an intern is whether the internship program is primarily benefiting the student or the employer. Do we have to provide vacation to interns? Small Business Reports. "Heard at Downsized Firms: 'Hey! For unpaid interns in the for-profit setting, it is a best practice to require the intern to provide proof of enrollment in a course or internship program that will allow that student to get credits. The FLSA provides that employees who work more than forty hours in a week must be paid for the excess hours at one and one-half times the regular rate of pay. What is the market wage rate / compensation for an intern? 9. It is unlikely that an intern would be considered an independent contractor. Done correctly, hiring an intern is a win-win proposition. 3. In the “for-profit” private sector, it is difficult to establish that an intern is not an employee. Convenience is a crucial aspect during the selection of an advocate. Interns are considered “volunteers” What is the expectation that the company review the intern’s performance? An intern must have a designated site supervisor who is responsible for providing orientation and supervision. Do we have to pay our interns? 17. In addition, most states have their own laws regarding pay, which often times closely track the FLSA. The UK has very specific regulations for the three primary classes of interns, which you would do well to research prior to hiring an intern. "Hiring Interns Can Lead to Real Insight into Your Company." "There has been a tremendous amount of attention given to this topic, because the U.S. Department … The Fair Labor Standards Act (FLSA) of 1938 states that any employee of a for-profit company must be paid for their work. provide internship guidelines and opportunities for an intern to learn about the entire business and not just to prepare him or her to perform a narrow job function. In general, in the non-profit sector, an intern can be unpaid if he or she is performing volunteer services with no expectation of being paid and in support of the goal or mission of the non-profit. So You Want to Hire an Intern. intern would be considered an employee instead of a valid unpaid The intern does not displace regular employees, but works under close supervision of existing staff; The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded; The intern is not necessarily entitled to a job at the conclusion of the internship; and The intern does not displace regular employees, but works under close supervision of existing staff; 4. to be considered independent contractors as they are not usually workers who are in business for themselves—they are generally students at paid internships or unpaid internships. For example, in some industries, the interns are paid at the same rate that the company pays to entry level employees upon graduation. Do your research on the legalities of creating an internship. Orrick, Herrington & Sutcliffe LLP is a leading global law firm with a focus on serving companies in the technology, energy and financial sectors. Whatever you hope to accomplish by hiring an intern, be sure to check with your company's legal department or consult an employment law professional to learn about the legalities of hiring an intern in your area. Companies should discuss this question with each individual intern to determine a reasonable number of working hours that will satisfy the credit requirements of the school if school credit is being sought and will otherwise be productive for both the company and the intern. Step 3: Design the Program. Gornstein, Leslie. Federal law (including the FLSA) does not regulate the number of interns a company may employ per internship program.​. Tuesday, March 31 at 11:00am proof of enrollment in a course or internship program that will allow that student to get credits. 2. Legal Issues For Companies With Internship Programs, Practical Issues for Companies With Internship Programs. .. Do your research and hire a good lawyer on your own terms. Which employment-related tax forms do we need to have an intern fill out? Employment Practices Liability: Legal Implications of Hiring Interns For many employers, the only difference between an intern and a temporary worker is that the intern is still attending school. Do not hire a lawyer who establishes the first contact. An intern that is an “employee” under the law would need to complete the same new employee paperwork as any other employee. The employer must also designate a current employee (manager or supervisor) that will provide supervision for the intern. Do we have to provide vacation to interns? Charlotte Jensen . ​. For J-1 students, the options are: An intern that is an “employee” under the law would need to complete the same new employee paperwork as any other employee. The students gain valuable work experience and the chance to prove that they’re worth considering for full time work (either at your company or elsewhere). He should not be very far them in terms of distance. However, if it is a paid internship and the employee works over 40 hours per week, (s)he must be paid time and a half for those hours worked in excess of 40 unless (s)he qualifies for an overtime exemption. Done correctly, taking on or hiring an intern is a win-win proposition. Can school credits replace payment for an intern? Is the internship for a limited period of time? Employers often have legal questions about how to hire an intern, especially about whether to hire paid or unpaid interns. This is common practice among scammers and unscrupulous legal types; it is often seen when there is a large cash settlement up for grabs. The Department of Labor (“DOL”) has stated that unpaid internships in the public sector at non-profit charitable organizations, where the intern volunteers without expectation of compensation, are generally permissible. When hiring interns, the FLSA does not require employers to provide employees, including employee-interns, any amount of vacation. An unpaid internship In any given internship program, a company should seek to provide appropriate tasks and a review of those tasks to all interns, and in particular ensure that the interns getting school credit for the internship are getting reviewed in a way that will support the student’s credit requirements. It can depend on your. Independent contractors are typically workers with economic independence who are in business for themselves as opposed to employees who are workers who are economically dependent on the business of the employer. Interns can be a great resource for a small company -- they're cheap, they're motivated and they bring a young perspective. 5. Interns will be considered employees and must be paid at least minimum wage for all hours worked unless all the following can be established: The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school. Is there a minimum number of vacation days we need to give them? Some employees are exempt from this requirement of the FLSA. Is there a max number of hours (per day/week) that an intern can work? Some state or local laws require that employee-interns receive paid sick days, depending on the location of the work and the length of time of the internship. You can’t put an unpaid person in a paid position to save yourself some money. Does the intern think that (s)he is going to get paid? Is there a minimum number of vacation days we need to give them? Some things you may need to consider include liability insurance, workers' compensation, and how minimum wage requirements apply to unpaid interns. Do we have to pay our interns (For-Profit Corporations)? How many hours per week do interns expect to work during the school year? As the DOL states, "If analysis of these circumstances reveals that an intern or student is actually an employee, then he or she is entitled to both minimum wage and overtime pay under the FLSA. Firstly, the location of his premises should be reachable anytime you want to see without incurring a cost. To facilitate a smoother hiring process, we have enlisted a few handy tips that employers can keep in mind while getting a foreign talent onboard – of the internship, the individual is more likely to be considered an employee rather than an unpaid intern. While not obligated to determine how the intern can Interns, however, are unlikely to be considered independent contractors as they are not usually workers who are in business for themselves—they are generally students at, If the intern is deemed to be an employee, then the employee may be eligible for certain benefits under federal law, including up to 12 weeks of unpaid leave per year under the Family Medical Leave Act. Interns, however, are unlikely When do most summer internships typically start? intern can meet those requirements. of the employer’s general employee population, the more likely the Consistent with the requirement that an unpaid internship is primarily for the benefit of the intern, and not the company. To be considered an unpaid intern, the student intern, and not the employer, should be receiving the primary benefit of the relationship. If we do have to pay our interns, should they be classified as exempt or non exempt employees? internship from an educational institution in order to be considered a perform? 6. 7. Some employees are exempt from this requirement of the FLSA. 1. It can depend on your internship program - if the intern is not deemed to be an employee, then benefits are not required to be provided. Companies, however, have a right to (1) ensure that their proprietary, confidential and trade secret information It is unlikely that an intern would be considered an independent contractor. The article discussed the issues surrounding unpaid interns, including wage and hour law violations. What are my responsibilities concerning an intern who might want school credit for his or her internship? The intern doesn't displace regular employees and works under close supervision of existing staff. How many interns can we employ at once? Find another use for an intern, or pay them. In … Like any other employee or volunteer, interns need to receive enough training so they can successfully meet your expectations. receive paid sick days, depending on the location of the work and the length of time of the internship. How much training should I provide my intern? For example, in some industries, the interns are paid at the same rate that the company If we do have to pay our interns, should they be classified as exempt or non-exempt employees? 4. Internship salary requirements: If the intern qualifies as an “employee” for purposes of the FLSA, (s)he must be paid in accordance with the Act, whether or not the intern If that is not the right balance, it is very likely that the law is being broken. mission of the non-profit. When do most summer internships typically start? The more training, and shadowing opportunities offered, particularly where that training is, for a broad skill set that would apply to a wide-range of positions, the, more likely the position can be considered an unpaid internship. Let the Intern Do It!'" When hiring new employees, there are many legal and issues that might arise. 15. However, if it is a 3. getting school credit for the internship are getting reviewed in a way that will support the student’s credit requirements. The intern i am looking to hire will be doing work strictly online and will be paid for their performance/output (~$5 or so an article published). The core issue is whether the internship program is primarily benefiting the student or the employer. Compensation for paid internships varies widely across geographic markets and industry. 5. May 1994. How many hours per week do interns expect to work during the school year? Is there a max number of hours (per day/week) that an intern can work? 16. (For-profit Corporations)? Interns are considered “volunteers” if they give their time freely and without anticipation of compensation for religious, charitable, civic, or humanitarian purposes to, The FLSA provides that employees who work more than forty hours in a week must be paid for the excess hours at one and one-half times the regular rate of pay. Now that you’re all set to start hiring interns, take the next step by posting the internship positions on www.wayup.com/employers or email bizhelp@wayup.com to get started. And sometimes they even work for free. an employee may work each day or each week before (s)he qualifies for overtime in respect to their internship salary. Even though hiring a lawyer can seem pricey, it could actually end up saving you money in the long-run. How to legally hire interns and provide real work integrated learning (WIL). 13. An independent contractor is not an employee and thus, is not subject to the provisions of the FLSA. What if they are unpaid? An independent contractor is not an employee and thus, is not subject to the provisions of the FLSA. State laws vary on the maximum amount I was wondering if there any legalities i should know about for hiring an intern. While not obligated to determine how the intern can, obtain school credit, once the intern discloses the, requirements, the company should ensure that the, Each school and internship program will have its own requirements for a student who is looking to get credit for the internship instead of an internship salary. Become involved in the success of Honors students Bring fresh ideas and new approaches by gathering . This is determined by the seven-point Primary Beneficiary Test. However, there are many legalities involving interns that employers, and temporary staffing agencies, need to be aware of. And most business owners and recruiters are unwary of these issues, despite that the issues can dent the image of their business. The purpose of hiring an intern is to help that person learn a new business or skill, more so than actually doing meaningful work for the company. would generally be for a limited, set duration as opposed to an ongoing To be considered an unpaid intern, the student intern, and not the employer, should be receiving the primary benefit of the relationship. A company's obligation to review the intern's performance, and how that review is to be conducted, will depend in part on the school's requirements. For example, even if it is a paid internship, the company and the intern should determine a schedule that will not interfere with school studies to ensure that the intern can perform his or her best for the company. It can depend on your State laws vary on the maximum amount an employee may work each day or each week before (s)he qualifies for overtime in respect to their internship salary. ensure that the interns getting school credit for the internship are getting reviewed in a way that will support the student’s credit requirements. Within 1 to 2 weeks following Memorial Day. How much training should I provide my intern? 5. Is the training that the employer is providing similar to hands-on, training provided by an educational institution? With an internship program like this, this includes interns who are also considered employees under the FLSA. Factors to Consider When Hiring an Attorney. For unpaid interns in the for-profit setting, it is a best practice to require the intern to provide Can school credits replace payment for an intern? In both the federal and state context, wage and hour laws apply only to “employees”. 7. The company should ensure that any student intern who is seeking school credit presents that information to the company and sets forth the expectations of the school so that the company can ensure that it is providing the student with the required training and experience that will allow the student to get the credit versus providing a paid internship. Generally, it is difficult to establish that an intern is exempt from overtime because interns do not exercise “discretion and independent judgment” in performing their job duties, which is the critical requirement to be exempt. valid unpaid intern. Your company benefits from adding creative talent at low or no cost. Student interns might seek the opportunity to participate in multiple internship programs at the same time. Legalities and Complexities of Hiring an Intern This is a past event. The intern is not necessarily entitled to a job at the conclusion of the internship; and 6. The more similar the work expected of the intern is to that Is the internship tied to a formal education program? for the company. A company's obligation to review the intern's performance, and how that review is to be conducted, will depend in part on the school's requirements. Is the internship tied to a formal education program? with the required training and experience that will allow the student to get the credit versus providing a paid internship. How much exposure to the whole business is expected for an internship? When it comes to internship programs, employers often have many legal and practical questions that they need to answer before they can even start hiring. intern. Compensation for paid internships varies widely across geographic markets and industry. Hiring Unpaid Interns: 5 Things You Need To Know. Do we have to provide vacation to interns? Hence, it means that his availability limited by anything. benefits translate regardless of scale. While hiring interns, employers should look up the federal Fair Labor Standards Act (“FLSA”), which is the federal wage and hour law that sets forth the legal requirements for compensation for employees, including paid interns, minimum wage and overtime pay. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship. WayUp is the go-to platform for early-career professionals to explore opportunities, receive advice, and get discovered by employers. With all of the legalities aside (for those details, please consult your CPA or attorney) bringing in someone to help you with your business can be challenging since it does require a good deal of trust and letting go of a certain amount of control – but in the end, it is usually worth the effort. Can school credits replace payment for an intern? 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