Navigating the Rules of Unpaid Internships

It is the time of year when companies may be approached by students looking to acquire some experience in the workplace. An internship can be an attractive option for both the student and the employer, but there are a few things to be aware of when instituting such a program, especially if it is an unpaid position.

1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under close supervision of existing staff;
4. The employer who provides the training derives no immediate advantage from the activities of the intern; and on occasion his operations may actually be impeded;
5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

1. It is strongly recommended the potential intern not be a former employee. Your intentions may be honorable and the employee may be willing to work for free, but the appearance of a former employee working as an intern could be too great for the DOL to overlook.
2. Create an internship program with written criteria, including the opportunity for the intern to observe and participate in all aspects of the company. Putting an intern in the mailroom for the summer would not classify as an internship.
3. When approached by an intern who is looking for experience to further their studies, request that the student apply for educational credit. Ask the intern to get permission from a faculty member who will require the student to report back to them at the end of the internship. This will further highlight the internship was for educational purposes;
4. Have the intern sign an internship agreement that shows he/she realizes he will not receive pay.  The agreement should also state that the company is receiving no immediate advantage from the activities of the intern, the employer and the intern understand the intern is not necessarily entitled to a job at the conclusion of the internship and the internship is for the benefit of the intern ; and
5. Do not allow a supervisor or manager to utilize an intern in place of a missing employee. This will be viewed as structured work and more likely to be considered an employee entitled to wages for the time spent.
6. Finally, consult your local employment attorney with questions regarding internship programs.

Collins & Lacy Intern Alex Williams Intern Alex Williams is the Collins & Lacy Marketing team’s newest member.  Alex is a high school graduate of Heathwood Hall Episcopal School in Columbia.  Both his parents are graduates of Georgia Southern University, and though he grew up a loyal Gamecock fan, Alex is currently a sophomore Horned Frog at TexasChristianUniversity located in Fort Worth.  He is also a die-hard Atlanta Braves fan.  He is majoring in Communication Studies and also studying Writing and Psychology of Leadership for his minors.  Alex has worked for a valet company in the Vista, Southern Valet, and for the plumbing and heating and air company, Gateway Supply.