Hiring Interns: Paid Vs. Unpaid
Summer is the season for soaking in some sun, going to the beach, and hiring interns.
What does your company know about hiring unpaid interns? Or paid interns?
A company can hire unpaid interns if they meet a very specific criteria. The Department of Labor has a six-part test to determine whether interns should be paid or unpaid. Click HERE to read the Department of Labor six-criteria test.
In addition to the Department of Labor’s criteria, a U.S Court of Appeals ruled in 2015 that the main question to ask yourself is whether the intern or the employer is the primary beneficiary of the employment relationship. The Court used a seven-point list that is close to the Department of Labor’s. To read the seven point list click HERE.
If all the criteria is met, an employment relationship will not be considered to exist under the FLSA. The intern will then not be considered an employee and the minimum wage and overtime provision will not apply to them.
Below is an infographic of whether you should pay an intern or if they qualify as an unpaid intern.