Paid vs. Unpaid Internships: What Are the Risks?

Offering internships can be a great way to partner with your local university to train future leaders in your field. But there’s a point of contention … paid vs. unpaid internships. So, if you’re using unpaid interns instead of putting them on yourpayroll, you may be running afoul of the law.

The biggest offenders are for-profit businesses, as the laws generally do not apply tonot-for-profit organizations.

Traditionally, even an unpaid internship has appealed to students because, in addition to being a valuable learning experience, it can often lead to a “real job.” However, internship compensation has become a matter for the court system.Disgruntled unpaid interns who were overworked, or
given meaningless assignments, have raised complaints … and initiated lawsuits.

Paid vs. unpaid internships: A six-part test

国际米兰的回答这个问题nship compensation, the U.S. Department of Labor developed a六部分测试to determine who’s a trainee or an actual employee (who should be on your payroll). To legally use unpaid interns, all six parts of the test must apply (briefly summarized here):

  1. The work experience is intended to benefit the student; not the employer.
  2. Interns should do work that is similar to the training they’re receiving at school.They may even receive class credit for their work with you.
  3. The employer should have no immediate advantage from the intern’s activities—their training could actually impede your workflow occasionally.
  4. The intern is not replacing an actual employee, and your employees closely supervise the student. The mentoring should be constructive and educational.
  5. There’s no agreement or promise of employment before or during the internship (of course, you can hire them afterward if they wow you).
  6. Both the employer and employee understand that no wages will be paid during the training period.

Weighing the risks

Don’t let concerns about paid vs. unpaid internships discourage you from the benefits of training an intern. In a2016年诉讼, the DOL rules protected the employer when the court weighed these six criteria. It was determined that the intern derived more benefit from the experience than the employer did.

The key to deciding about internship compensation is the DOL rules.正如Pepper Hamilton的劳工和就业法律律师Susan Lessack所述INCmagazine:

“If your company doesn’t meet just one of these [DOL’s six-step test items], you could be on the hook for a whole lot of back pay and a boatload of legal costs.”

The Society for Human Resource Management (SHRM) recommends, if you are considering paid vs. unpaid internships, that you first look at how your internship program is structured. Does the work schedule coordinate with the academic calendar? Are you giving the intern work that matches up with their course requirements? Once you’ve created your program, you can decide您将如何找到实习生that are a good match for your company.

法律风险会降低实习机会吗?根据统计数据,这不太可能。According to theBureau of Labor Statistics,2016年4月的失业率为5.0%,但有20%的大学毕业生21至24岁是失业者(当前的人口调查(CPS))。为了成为受雇的毕业生之一,学生正在积极寻找实习。

在工作和生活经验方面,良好实习的价值是无价的。But you’ll need to consider paid vs. unpaid internships, and take a close look at the DOL’s six criteria before taking on an intern. If you determine that the intern should be paid, you will want to officially put them on your payroll, pay them minimum wage, … or not use them at all.

This updated article was originally published December 3, 2010.

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