Using Unpaid Interns in Your Business

If your for-profit business is considering utilizing unpaid interns, be sure that you comply with U.S. Department of Labor regulations that apply to unpaid workers and allow them to be classified as trainees under the Fair Labor Standards Act, including the following.

1. Unpaid interns must receive training that is similar to the training that they would receive in a vocational school or academic institution. Ideally, an unpaid intern should develop skills that can be used in multiple workplaces, not just in one employer's workplace.

2. The training must provide a benefit to the unpaid intern as opposed to just benefiting the employer. A position that involves filing, clerical work and other menial chores for 8 hours a day is unlikely to pass muster.

3. An unpaid intern cannot be used as free labor in place of a paid employee. Rather the intern must work under the supervision of a paid employee. If the employer would have to hire a paid replacement if the unpaid intern was not available, the intern may not qualify for classification as a trainee.

4. Accepting an unpaid intern position should not automatically entitle the individual to a job when the internship ends.

5. The employer should not derive an immediate benefit from the unpaid intern's activities.

6. The unpaid intern must understand that he or she will not be paid.

Admittedly, some of these requirements are vague. For example, it may be difficult to define what is or is not an immediate benefit to an employer arising from an unpaid intern's activities. However, taken together, these regulations should help an employer determine whether an unpaid position qualifies as training rather than paid employment. In general, the unpaid internship experience should focus on education and training and the primary beneficiary should be the intern not the employer.

Unpaid interns, not just employers, should understand the rules that regulate these positions so that they are able to protect their own interests, especially because regulators may not be aware of or investigate problems except when a complaint is made. Although many unpaid interns are reluctant to complain, even after long days of menial labor, and are grateful for any opportunity to gain even minimal experience in the workplace, knowing the regulations may help them avoid unproductive unpaid positions by asking the right questions before accepting an internship.

Sources:

Steven Greenhouse, www.nytimes.com, The Unpaid Intern - Legal or Not - NYTimes.com

wdr.doleta.gov/directives

education-portal.com, U.S. Department of Labor Clarifies rules for Unpaid Internships