Are you planning on hiring
interns this summer? Many companies hire interns as “volunteers” without
payment, or pay interns less than the minimum wage. But the fact is that
internships are most often considered employment, and can be subject to the
federal minimum wage and overtime rules. Under the Fair Labor Standards Act,
interns in the for-profit sector who qualify as employees must be paid at least
$7.25 per hour, and not less than one and one-half times the regular rate of
pay after 40 hours of work in a workweek.
There are certain cases in which
an individual involved in an internship or training program may do so without
receiving compensation. The United
States Department of Labor uses the criteria outlined below to determine
whether or not an intern must be paid. If all of the factors listed below are
met, the Fair Labor Standards
Act does not apply to the intern, and therefore the interns are not
required to receive compensation.
1.
The internship is similar to training which
would be given in an educational environment.
2.
The internship experience is for the benefit of
the intern.
3.
The intern does not displace regular employees,
and works under close supervision of existing staff.
4.
The employer that provides the training derives
no immediate advantage from the activities of the intern.
5.
The intern is not necessarily entitled to a job
at the conclusion of the internship.
6.
The employer and the intern understand that the
intern is not entitled to wages for the time spent in the internship.
If you have any questions, please
let us know!
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