Many college students seek internships over the summer as a way to gain experience in their field of study and earn a little extra cash. With the unemployment rate higher than it’s been in decades and companies cutting back on both full time and temporary staff, paid internships are in short supply for college students this summer.
This also represents a void for many businesses who routinely seek interns as a way to augment staff and give back to the community in the form of mentorship, the intention of the intern program.
Hiring an unpaid summer intern could be an attractive alternative. Before you view this option as the “holy grail” to free labor, be sure you’re in it for the right reasons or you may find yourself in violation of FLSA laws. The DOL provides very specific circumstances that must be met to qualify as an unpaid intern:
The work is considered training and is similar to that received in school. Hiring a marketing major as an unpaid “intern” for an assembly line job is most likely not relevant work.
The training is for the benefit of the student. As a business owner or manager, the benefit you receive comes in the form of satisfaction that you mentored an up-and-coming college student.
The employer receives no immediate advantage from the work performed. This is where it gets tricky. Taking phone orders translates into immediate advantage, as does any other type of activity that directly or indirectly generates revenue.
The student/trainee is not entitled to a job at the end of the period. Be specific about start and end dates and make no promises for future opportunities. Period.
Both parties agree that the student/trainee is not entitled to wages during the period. College students are new to the business world and the professional workforce. Be sure you document and clearly communicate job responsibilities, office environment expectations and the unpaid nature of internship.
For more information on the intern and student work programs, visit the DOL site at:
http://www.dol.gov/elaws/esa/flsa/scope/er15.asp
