When Your Intern is Considered an Employee


Internships can provide great benefits to employers in busy times, or with special one time projects. Student interns also benefit with real world work experience, which better prepare them for their careers. If your organization is working with interns or would like to develop internship opportunities, it's important to know that the U.S. Department of Labor has issued requirements regarding internship and pay.

According to the USDOL, a student or trainee will not be considered an employee if all of the following criteria are met:

•  The work experience, even though it includes actual operation of the employers facilities, is similar to that which would be given in a vocational school.

•  The work experience is for the benefit of the students.

•  The students do not displace regular employees, but work under
the close supervision of employees.

•  The employer that provides the work experience derives no immediate advantage from the activities of the students, and on occasion the employers operation may be impeded.

•  The students are not necessarily entitled to a job at the conclusion of the internship period.

•  The employer and the intern understand that the intern is not entitled to wages for time spent in work activities.

•  Total internship cannot exceed twelve months.

Interns not meeting all of the above criteria will, in fact, be considered employees covered by the Fair Labor Standards Act (FLSA) and therefore the employer is legally obligated to provide compensation for his or her services. If there is any question regarding the proper employment status, employers are advised to seek advice from legal consultants to ensure compliance with federal and state labor laws.

For additional information, visit www.compliance.gov .