Navigating the Maze of Hiring an Intern
May 13, 2014 by Global Administrator
Posted in: Human Resources Management
Tags: FLSA, Internship, Paid, Standards, Unpaid
Hiring an intern sounds easy, but there are a few tricky pitfalls that can snag you up and even cause trouble with the Department of Labor. Is the intern performing work that you would normally pay someone to do? Is this intern categorized as an “employee” or “trainee” as defined under the law? These are things that can land you with a lawsuit.
Many interns are defined as employees and are required to be paid at least minimum wage under the Fair Labor Standards Act. Internships can only be unpaid in certain circumstances. All of the following must apply for an unpaid internship:
- The intern job and training description, even though it relates to the operation of the dealership, must be similar to what would be given in a vocational school.
- The training must be to the benefit of the intern and their education.
- The intern must not displace regular paid employees.
- The intern must work under close supervision of a regular dealership employee.
- The employer of the intern must not receive any immediate benefit or advantages from the activities of the intern.
- The intern is not necessarily entitled to a paid position at the completion of the internship position.
- The employer and intern must mutually understand that the intern is not entitled to wages in relation to the internship.
Even if you have an intern that is earning class credit for their internship, if the intern does not meet all the above criteria they must be paid under the law.
Do you have questions about an intern that you have on staff? Contact [email protected].