Can You Have an "Unpaid Intern" Under Federal and State Law?
Providing internship and training programs can benefit businesses as well as students. These programs can provide many great opportunities to young workers but are these interns doing it solely for the experience and working without pay? Some actually think so. The New York Times recently published an interesting article discussing the scope of the problem. And it should come as no surprise that the Federal and State Departments of Labor are out in force. As we approach the summer months, when internship levels are at their highest, these guidelines will help keep employers in compliance.
In order to explain the federal internship regulations, The US Department of Labor Wage and Hour Division has provided an Internship Programs Under the Fair Labor Standards Act (FLSA) fact sheet making available the information needed to determine whether interns must be paid the minimum wage and overtime under the Fair Labor Standards Act (FLSA) for the services they provide. Some circumstances under which individuals who participate in internships or training programs may do so without compensation. This fact sheet provides the necessary criteria to determine whether an employment relationship exists and whether the intern is entitled to minimum wage and overtime compensation.
New York State also has rules concerning the use of interns. It relies on the factors used by the USDOL but also adds a few of its own factors. Follow this link to a recent NYS DOL Opinion Letter on this subject: http://www.labor.ny.gov/sites/legal/counsel/pdf/Other/RO-09-0189.pdf
When hiring an intern, carefully review federal and state law … and avoid labor law violations.
Follow this link to the New York Times article: The Unpaid Intern, Legal or Not