1. No unpaid interns! That's right, most interns do not qualify for unpaid status. The legal definition of who is an employee is broad and will cover 9 out of 10 situations. This means at least paying minimum wage and overtime for virtually every intern.
2. For everyone who does not believe Rule No. 1, read it again. Now, there are six criteria, all of which have to be met to have an unpaid intern.
- The internship has to be similar to what the intern would learn at school;
- The internship is for the benefit of the intern (not the employer). In other words, the intern can't take the place of your employee while the employee goes on vacation;
- There must be an agreement from the start that the intern will not be paid;
- The intern must work with others, be supervised closely and cannot be used instead of someone else. Think of an unpaid intern as a shadow employee that you as the employer are teaching. Often the intern also receives college or school credit;
- This one is big. You as the employer can gain no immediate advantage to having the unpaid intern and your progress could be slowed. Again, this is the concept of someone learning from you rather than being brought in as free help; and;
- There is no expectation of a future job for the intern. The internship is not a prolonged job interview or tryout.
3. If you ignore Rule 1, make sure the six criteria are in a written internship offer letter which includes that it is unpaid; a job upon completion is not guaranteed and outlines the type of training provided.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
