Delinquent Summer time Internships Really Are A Bad Deal – For Companies
With summer time around the corner, it appears a great time to improve around the subject of summer time internships. Lots of senior high school and faculty students – even recent college graduates – would appreciate the chance to understand some abilities, boost their resumes, and possibly have helpful connections lots of companies can use additional help, especially if it’s free. Everyone benefits, what exactly might be wrong?
What is wrong is the fact that most delinquent internships within the private sector violate federal and condition minimum wage laws and regulations. Generally, a company who “suffers or permits” someone to work be forced to pay the individual for labor, and should pay a minimum of the minimum hourly wage, which in Connecticut is presently $8.70. A company who breaks what the law states is susceptible to fines, penalties, and damages, including, potentially, punitive damages and attorney charges.
The U.S. Department at work has clarified the limited conditions where a private sector intern don’t have to be compensated. The following criteria should be satisfied:
- the internship is similar to training which would be given in an educational environment;
- the experience is for the intern’s benefit;
- the intern doesn’t displace regular employees, but works under close supervision;
- the employer derives no immediate advantage from the intern’s activities, and on occasion its operations may actually be impeded;
- the intern isn’t entitled to a job at the end of the internship;
- the employer and the intern understand that the intern isn’t entitled to wages for the time spent in the internship.
These criteria are challenging meet, as numerous prominent companies have lately learned for their dismay. NBC Universal, Conde Nast, Hearst Corporation, Fox Searchlight, yet others have faced class action lawsuit lawsuit introduced by former interns. Certain cases have settled, while some remain pending.
Nonprofits and government departments might have volunteer interns, but private, for-profit companies generally can’t. Should you can’t show you fulfill the Department of Labor’s six criteria, you ought to pay a minimum of the minimum wage.
The DoL fact sheet on “Internship Programs Under the Fair Labor Standards Act” can be downloaded here: http://www.dol.gov/whd/regs/compliance/whdfs71.htm.