Our Human Resources Blog

With summer quickly approaching, many businesses are considering using unpaid interns for extra help around the office. While internships and training programs can benefit both businesses and students, employers need to be aware of certain rules and restrictions before hiring an intern.

Companies that take on unpaid interns should be familiar with the Federal Fair Labor Standards Act (FLSA). Under the FLSA, some individuals who participate in internships may do so without compensation, if they are properly classified. The FLSA regards an internship as a training program.

For an unpaid internship to be lawful, the following 6 criteria must be met:

1. The training is for the benefit of the intern.
2. The training, even though it may include actual operations of the employer, is similar to that offered in a vocational school.
3. The intern must not displace or do the work of a regular employee.
4. The employer must receive no immediate benefit from the activities of the intern.
5. The employer and the intern understand that they are not entitled to wages for the time spent in training.
6. The intern is not necessarily entitled to a job at the end of the training period.

Additional information on unpaid internships can be found on the DOL’s Fact Sheet entitled “Internship Programs Under the Fair Labor Standards Act”.

When hiring an intern, it’s important to structure the position in a way that the intern receives the full benefit of the experience in order to ensure compliance with the law.  Employers should carefully review federal and state laws to avoid labor law violations.