Hiring Interns, The Legal Way

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Hiring unpaid interns may actually violate state and federal labor laws. Here's how to protect your company.

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Hiring Interns The Legal Way Po Po ste te d Ma Ma rch ch 7 7 2 0 17 7 by by J J u st t wo o rk k s in in H IR R I NG A G A ND O D O NBOARD BOARD I NG G Hi ring unpai d inte rn s may act ually violate state an d fe de ral labo r la w s. He re s ho w to p rotect yo u r company. Hi ring an inte rn at yo u r company i s a g reat way to give a college st u dent o r ne w p rofe s sional some han d s-on expe rience in yo u r in d u st ry. Companie s often hi re inte rn s to do lo we r-level wo rk in exchange fo r the oppo rt unity to get a foothol d into a ne w in d u st ry an d lea rn f rom behin d the scene s. Ho weve r many companie s have hi sto rically hi re d inte rn s on an unpai d ba si s in o r de r to save co st s on job s that wo ul d othe r wi se go to ent ry-level employee s. Tho ugh ve ry common the p ractice of employing unpai d inte rn s may act ually violate state an d fe de ral labo r la w s. Up date: Hi ring inte rn s i s s uch a pop ula r s ubject weve b uilt a mo re in- depth g ui de on navigating the p roce s s legally. Yo u can do wnloa d it fo r f ree he re. He re s ho w to hi re inte rn s the legal way.

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The La The La w on Unpai on Unpai d Inte nte rn n s Un de r the Fai r Labo r Stan da r d s Act FLSA mo st inte rn s in the fo r-p rofit p rivate secto r will be con si de re d employee s that a re s ubject to the FLSA’ s minim um wage an d ove rtime req ui rement s. Ho weve r if an inte rn i s not an employee within the meaning of the FLSA then the FLSA’ s minim um wage an d ove rtime req ui rement s do not apply. The U.S. Depa rtment of Labo r DOL applie s a six-facto r te st o utline d belo w to dete rmine whethe r an inte rn fo r a fo r-p rofit p rivate secto r b u sine s s i s con si de re d an employee fo r p u rpo se s of the FLSA. Not all fe de ral co u rt s rely on the DOL’ s six-facto r te st ho weve r. An d diffe rent req ui rement s may al so exi st un de r state an d local wage an d ho u r la w s. La stly keep in min d that the DOL’ s te st only applie s to fo r-p rofit b u sine s se s. Unpai d inte rn ship s in the p ublic secto r an d fo r non-p rofit cha ritable o rgani zation s whe re the inte rn vol untee r s witho ut expectation of compen sation a re gene rally pe rmi s sible. The DOL’ s Six-Facto r Te st fo r Unpai d Inte rn s Un de r the DOL’ s te st an employment relation ship doe s not exi st un de r the FLSA if all of the follo wing facto r s a re met: 1. The inte rn ship m u st be simila r to t raining that wo ul d be given in an e d ucational envi ronment 2. The inte rn ship m u st be fo r the benefit of the inte rn 3. The inte rn doe s not di splace reg ula r employee s b ut wo rk s un de r clo se s upe rvi sion of exi sting staff 4. The employe r de rive s no imme diate a dvantage f rom the inte rn an d on occa sion it s ope ration s may act ually be impe de d 5. The inte rn i s not nece s sa rily entitle d to a job at the en d of the inte rn ship an d 6. The employe r an d inte rn un de r stan d that the inte rn i s not entitle d to wage s fo r the time spent in the inte rn ship. In a d dition to the DOL’ s six-facto r te st some state s incl u ding Ne w Yo rk have othe r req ui rement s that m u st be met to remove an inte rn f rom state wage an d ho u r p rotection s. Be s u re to eval uate the req ui rement s un de r applicable state an d local la w s befo re implementing an unpai d inte rn ship p rog ram. Relate d a rticle: 9 Simple Tip s fo r Hi ring Inte rn s Legally Fo rme r Unpai d Inte rn s S uing Employe r s In the pa st fe w yea r s some high p rofile cla s s-action la w s uit s have been b ro ught again st companie s by fo rme r unpai d inte rn s. Expe rt s e stimate that up to 5 0 of the 1. 5 million inte rn ship s in the US thi s yea r will go unpai d. Hi ring unpai d inte rn s can be ri sky. Lea rn ho w to hi re inte rn s the legal way. G G ET T T T H E GU GU ID D E

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Rea d Thi s Next H IR R I NG A G A ND O D O NBOARD BOARD I NG G 9 Simple Tip Simple Tip s fo fo r Hi i ring ing Inte nte rn n s Legally Legally Fo r in stance in 2 0 1 5 Ma ry-Kate an d A shley Ol sen’ s company D ual sta r Ente rtainment G ro up sa w a cla s s-action la w s uit file d by ove r 4 0 pa st an d p re sent inte rn s. The s uit acc u se d the company of failing to pay inte rn s an d expecting deman ding long sche d ule s. La u ra ODonnell a la wye r at Hayne s Boone in San Antonio who rep re sent s management in labo r di sp ute s wa rn s that “thi s t ren d i s p robably going to expan d beyon d me dia companie s an d beyon d Ne w Yo rk. I think employe r s in all in d u st rie s ac ro s s the co unt ry nee d to take note." P rotect Yo u r Company If yo u’ re planning on implementing an inte rn ship p rog ram at yo u r company yo u sho ul d con s ult with legal co un sel to en s u re compliance with all applicable la w s an d reg ulation s. When in do ubt it’ s p robably be st to cla s sify inte rn s a s employee s an d pay them a s req ui re d un de r applicable fe de ral state an d local la w. The se day s it pay s to be ca utio u s. When in do ubt be s u re to con s ult a la wye r. If yo u re a J u st wo rk s c u stome r we can p rovi de g ui dance an d be st p ractice s with re spect to setting up an inte rn ship that’ s beneficial to both yo u an d yo u r hi re s. Reach o ut to o u r s uppo rt line at 8 8 8 5 34- 17 1 1 o r di rectly to HR Concie rge. Thi s content i s fo r info rmational p u rpo se s only an d i s not tax o r legal a dvice. Po Po ste te d Ma Ma rch ch 7 7 2 0 17 7 by by J J u st t wo o rk k s in in H IR R I NG A G A ND O D O NBOARD BOARD I NG G CALL US AT 8 8 8 5 34- 17 1 1 W W HY JUSTWORKS Y JUSTWORKS Compa re U s Why P EO O u r C u stome r s

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