Businesses often use interns, and these ideally are win-win partnerships. On the one hand, the inexperienced worker gains valuable hands-on experience by working in a professional environment. On the other hand, the company gets an influx of fresh ideas from the classroom and an infectious sense of optimism that can lighten the mood of the workplace.
Some internships are unpaid, while others involve modest pay. Under the Fair Labors and Standards Act (FLSA), employers are usually required to pay at least minimum wage and overtime, but students and interns may be exempt from this law.
Do the job qualify as an internship
The FLSA uses a primary beneficiary test to determine if the internship can be unpaid. There are seven factors the Department of Labor considers, but all need not be applicable, and there is no one overriding deciding factor:
- There is no overt or implied promise to pay for the work.
- The training the intern receives is similar to what they would get in a classroom.
- The job is part of the intern’s educational curriculum, and they receive credit for it.
- The internship is tied to an academic calendar and matches their academic commitments.
- The position is for a limited period where they gain beneficial knowledge.
- The intern’s work complements the full-time employee’s work rather than displaces the worker.
- The intern is not guaranteed a fulltime position after the internship.
Businesses need to be careful
Despite the intern-employer relationship being mutually beneficial, it is wise to consider all of the above stipulations to ensure that the company does not break the law. Employers or interns with questions about a specific internship may wish to speak with an experienced attorney who handles business law and employment law issues.
