Prior to January, the DOL used a 6-part test for analyzing whether individuals could be treated as … Enter the intern's employment information. All Rights Reserved. As a best practice for small businesses, Andy Gale highly recommends that employers should meet the six standards set by the Department of Labor for hiring unpaid interns. People often think of the term intern as meaning “pre-entry level.” In many cases, that’s fine. The U.S. Labor Department rolled out new guidelines this month that make it easier for companies that want to hire interns but don’t want to pay them. Recently, the United States Ninth Circuit Court of Appeals (which includes California) ruled on how we answer the question Is Your New Hire an Unpaid Student Intern or a Paid Employee? Sign In Below. However, it c… Essentially, both the DOL and the California DLSE maintain that for an internship to be unpaid, it must be educational and predominantly for the benefit of the intern, and not the employer. In addition to the wages due to the unpaid intern, employers may face potential liability for overtime and, for employees based in California, missed meal or rest periods. Question #1: Should I hire a paid or unpaid intern? Home » Practice Areas » Wage and Overtime Claims » Unpaid Internships. A job does not have to be guaranteed at the conclusion of the internship. The intern receives general, rather than specific job training. Watching Businesses in California Who Hire Unpaid Interns. No other pay. For immediate access, join online or by phone at (800) 649-4921. Trainees cannot be guaranteed a paying job at the conclusion of their training period. Business California All Rights Reserved. Unpaid internships that operate within federal and state guidelines can be beneficial to both the intern and the employer. Seasonal internships are helpful for specific projects, but consider an intern’s onboarding period, as well. Nelson Law Group. State and local government agencies and non-profit organizations can generally utilize interns or volunteers without an obligation to pay them under the FLSA. People meeting these criteria are generally exempt from overtime and minimum wage rules. The intern cannot receive employee benefits, including insurance or workers comp. May I hire a person as an unpaid intern? The employer cannot derive any immediate advantage from the work of the trainees (in fact, employers’ operations should to some extent be impeded by the trainees’ presence). Sitemap | It certainly shouldn't be difficult to find one. SAN MATEO, CA - JULY 16: A box for job seekers to leave resumes sits on a table at the National Career Fairs' San Francisco South Career Fair on July 16, 2012 in San Mateo, California. California State Universities . The employer cannot receive any immediate benefit or advantage from hiring the intern, i.e. When can I hire an unpaid intern or volunteer: The six-factor test is primarily used in the, “for profit,” private sector. Advertisements for the training jobs must clearly indicate that they are not for paying work. The U.S. Department of Labor has set requirements for determining whether an unpaid internship is legal. You can find interns by contacting your college career center or searching on job boards like Indeed. The rules provide that no one element controls, and it is not necessary for an intern to meet all seven elements to properly qualify as an unpaid intern. Nelson Law Group. The position must train the intern to work in a given industry, not just a specific company. California has also derived an unpaid internship test, but with additional requirements. California Laws. This is a good way for employers to determine whether their unpaid internship violates the law before hiring. How to Hire an Unpaid Intern Without Breaking the Law. There are also several law schools that host clinics, where students get class credit to participate in unpaid internships. As with interns, a defining characteristic of trainees is that they generally receive little to no monetary compensation for their work. Make a valuable program with our internship handbook. Smith Accountants should hire a part-time employee, not an unpaid intern. ... ABOUT THE PROGRAM . The work that trainees perform, even if it includes operation of the employer’s equipment or facilities, must be similar to that which they would otherwise perform in a vocational school or program. Privacy Policy | However, there are times when employers take advantage of unpaid interns in violation of federal or state law. Here are five things you need to know. Unpaid internships that operate within federal and state guidelines can be beneficial to both the intern and the employer. A Summary of California Rules Governing Unpaid Interns and Trainees. Specialized student-learner intern programs can be an option for businesses that are willing to hire someone over 16 years of age (over 18 for hazardous jobs). It’s easy to see why – internships give students and other young adults a way to obtain real-time, hands-on experience in fields they hope to pursue. Our employment lawyers are prepared to help you figure out if the employer violated unpaid internship labor laws, and whether you may be entitled to file an employment law claim for unpaid wages. It is important for employers to remember that hiring an unpaid intern as a replacement for an employee or causing an intern to perform an employee’s duties is illegal unless the intern is paid at least minimum wage plus overtime for any hours worked over the 40 hour workweek. Ensure that internships benefit the interns, not the business. There was only one catch: it had to be on the intern… Money-whiners and over-qualified individuals need not apply.”. There is a second category of intern-like workers who, under appropriate circumstances, can also be exempt from state and federal overtime and minimum wage requirements. It should be noted that unpaid internships often lead to long and lucrative careers in a person’s chosen field. Although internship arrangements can be a good start to a promising career, some employers treat interns like free labor, giving no regard to the intern’s legal rights. When gauging the validity of trainee arrangements, the DLSE will generally look at 11 different criteria, all of which must be met in order for the education-in-lieu-of-pay relationship to be upheld. And while this arrangement may sound great for employers, it is in fact fraught with potential problems and vulnerabilities. The work must be primarily for the benefit of the trainees, rather than the employer. The intern(s) must be aware that the internship is unpaid. 4. Training should be closely tied to the intern’s educational goals. In valid trainee arrangements, employers will not be required to pay minimum wages and/or overtime because the trainees will not be considered to be employees, hence minimum wage and overtime rules will not apply. to talk about your California unpaid internship today. 345 West Portal AvenueSuite 110San Francisco, CA 94127, © 2020 Nelson Law Group. When recruiting, the employer must be upfront about the unpaid nature of the position. California, for one, has detailed guidelines for the hiring of unpaid interns, a criteria which is almost identical to the federal list. 4. The trainees clearly understand that they are not entitled to wages for their work time. Preview This premium content is for our members. By some accounts, there are over 1.5 million unpaid interns working in … Small Business California . The Federal court adopted what is referred to as the “Primary Beneficiary Test” to determine this issue under the Fair Labor Standards Act (“FLSA”). Know the Department of Labor's six legal criteria. However, other state laws apply more stringent standards in considering the bona fides of an unpaid internship. An intern might be eligible for workers’ compensation coverage if they are unpaid but their duties and schedule are directly controlled by you as the employer. It should be noted that unpaid internships often lead to long and lucrative careers in a person’s chosen field. The screening process for the training job cannot be the same as that used for regular employees (i.e., applicants should not think they are applying for paying jobs). How to Hire Unpaid Interns the Right Way. On the Employment Type step, select Employee, then Intern from the employment type section. 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