Spring is in the air…which means Summer is not far behind! If you plan to hire Summer Interns, here are some things to consider:
- Summer interns are generally required to earn at least minimum wage. College credits are not an accepted form of compensation and can not be offered in lieu of compensation.
- Should you have a paid or unpaid intern? Generally speaking, most internships are paid. There are some exceptions that can apply. All of the following criteria must be met if you are considering an unpaid internship:
The following six criteria must be applied when making this determination:
- The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
- The internship experience is for the benefit of the intern;
- 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 employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
If all of the factors listed above are met, an employment relationship does not exist under the FLSA, and the Act’s minimum wage and overtime provisions does not apply to the intern. If the internship does not meet all of the above criteria, then the internship is a paid internship and all Federal and State wage and hour laws would apply.
More information on this topic can be found online at:
If you’re offering a paid internship, local college career offices can be a great resource to provide you with what the “going rate” is for current intern rates. Sometimes they even have information by major and/or college year.
Properly compensating your summer interns ensures you are in compliance with Federal and State wage and hours laws. This will help ensure that your interns have a positive experience during their internship and will hopefully want come back some day as a future employee!