In the vast majority of instances, internships in the “for profit non-government sector constitute employment. As a result, an individual must be paid for all hours for which she/he provides services. In limited instances, internships may qualify for being treated as non-employment. In these instances, interns do not have to be paid.
• For this to be the case, there are six criteria from the U.S. Department of Labor that must be met.
• All six of the criteria must be met for the intern not to receive pay.
➡ The federal government’s position clearly leans toward interns are not free labor.
Interns in the “for-profit” non-government sector who qualify as employees rather than interns or trainees must be paid at least the minimum wage and overtime compensation (at 1 & ½ times their regular rate of pay) for any hours worked over forty in a workweek. Here’s two examples of the six criteria:
- The internship is similar to training which would be given in an educational environment.
- 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.
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RECOMMENDED EMPLOYER ACTION If you have interns or are planning to utilize interns at the end of the college school year:
- Evaluate the specifics of your internship.
- If you are not paying interns/do not plan on paying interns, ensure the internships meets all six Department of Labor qualifications in order for the internship to be in regulatory compliance .
If your organization needs help with the issue of internships, Trinity’s Team of Consultants can provide assistance expertly and economically.
• For more information, e mail Trinity at info@TrinityHR.net or visit our website at www.TrinityHR.net.
You have questions…Trinity has answers.