According to the U.S. Department of Labor and the California Department of Labor Standards Enforcement, there are certain standards that employers must follow when taking on interns. How to Hire an Intern. Though the state regulations are quite similar to the federal rules, there are some key differences to be aware of. Question #1: Should I hire a paid or unpaid intern? an employer cannot hire an intern just to cover a sudden vacancy. Misclassifying unpaid interns can be an incredibly costly mistake for businesses in California and across the US. According to the new Fact Sheet, for a business to qualify (legally hire “unpaid … Home » Practice Areas » Wage and Overtime Claims » Unpaid Internships. Smith Accountants should hire a part-time employee, not an unpaid intern. Since coverage for unpaid interns can vary from state to state, it’s best to … Business California Employers therefore should keenly understand these rules before allowing anyone to work as an unpaid intern. Six-Part Test to Determine Whether Hiring Unpaid Interns is Okay. Enter the intern's employment information. Unpaid Internships in California have seen a steady increase over the years. Privacy Policy | An intern’s rights depend on their employment status. You can find interns by contacting your college career center or searching on job boards like Indeed. © 2020 Kesluk, Silverstein, Jacob & Morrison, P.C. 1. Departments employ interns during the school year and also in the summer. But you may legally hire an unpaid intern if you can show the intern is the “primary beneficiary” of the relationship. Advertising for the internship clearly describes it a… Determine the best time to hire an intern using the table below. Watching Businesses in California Who Hire Unpaid Interns. A Summary of California Rules Governing Unpaid Interns and Trainees. There was only one catch: it had to be on the intern… The intern is not necessarily entitled to a job at the conclusion of the internship; and; The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship. Preview This premium content is for our members. Hiring an intern at your company is a great way to give a college student or new professional some hands-on experience in your industry. On January 5, 2018, the United States Department of Labor (DOL) issued a new standard for determining whether an individual could be classified as an unpaid intern. If you suspect an unpaid internship may be illegal and that the company abused your rights as an unpaid intern, you should speak with an experienced California employment law attorney at the law firm of Kesluk, Silverstein, Jacob & Morrison, P.C. The DLSE generally disapproves of unpaid training arrangements and will invalidate those arrangements where it is either doubtful or unclear whether all of the above-noted criteria have been met. This exception requires the intern to qualify as a “trainee.” Download Now. It depends. Given the significant risks associated with training arrangements, employers would be wise to do the following before hiring any unpaid trainees: Robert S. Nelson is the founder of the Nelson Law Group, a San Bruno, California based law firm specializing in labor and employment matters. Specialized student-learner intern programs can be an option for businesses that are willing to hire someone over 16 years of age (over 18 for hazardous jobs). So if you want to pay an intern a stipend for his or her work, it has to be equal to the minimum wage that the intern would have received for the hours worked. Make a valuable program with our internship handbook. If the intern is unpaid, it can be harder to determine. Recently, the United States Ninth Circuit Court of Appeals (which includes California) ruled on how we answer the question Is Your New Hire an Unpaid Student Intern or a Paid Employee? From your admin dashboard, click the Hire button in the Directory app. You also can list internships on sites such as Internships.com, Idealist.org, Looksharp.com, or MonsterCollege. Once you answer all the necessary questions, you can then turn to intern recruitment. Or click the Hiring app and then click the Add Team Member button. Money-whiners and over-qualified individuals need not apply.”. The employer cannot receive any immediate benefit or advantage from hiring the intern, i.e. Begin the hiring flow. It’s easy to see why – internships give students and other young adults a way to obtain real-time, hands-on experience in fields they hope to pursue. An intern credential is issued by the Commission on Teacher Credentialing upon application from an approved teacher preparation intern program when a school district, charter organization, or county office of Education (LEA) employs an intern and agrees to provide support as required by program standards and regulations. Already a Member? The Federal court adopted what is referred to as the “Primary Beneficiary Test” to determine this issue under the Fair Labor Standards Act (“FLSA”). The intern(s) must be aware that the internship is unpaid. Intern Start Date . People often think of the term intern as meaning “pre-entry level.” In many cases, that’s fine. It should be noted that unpaid internships often lead to long and lucrative careers in a person’s chosen field. All California businesses seeking to hire interns must submit an outline of the proposed internship to the DLSE. There is a mutual understanding that the intern will not receive wages over the course of the position. Hiring an intern is a great way to tap into talented students who haven’t yet graduated from college. 345 West Portal AvenueSuite 110San Francisco, CA 94127, © 2020 Nelson Law Group. If your unpaid internship in Los Angeles fails to meet these standards, talk to a California employment law attorney about your best legal options. Internships are sometimes called work placements or work experience. The intern’s duties will be similar to training provided by an educational institution. Paid Intern - If you would like to pay an intern, then best practices are to pay at least minimum wage ($10.50 in LA County for businesses with less than 26 employees as of July 1, 2017) using a W-2. Fill out our case review form for free legal advice about the legality of a California unpaid internship. However, in California the existing law states that a worker can be classified as an intern (and not be paid) only if all of the following six requirements are satisfied: Factor 1: Training similar to that provided at a vocational school. How to Hire Unpaid Interns (Legally) Before you set your bright new interns to work, here are a few things to keep in mind to avoid any missteps: According to the U.S. Department of Labor and the California Department of Labor Standards Enforcement, there are certain standards that employers must follow when taking on unpaid interns. Essentially, both the DOL and the California DLSE maintain that for an internship to be unpaid, it must be educational and predominantly for the benefit of the intern, and not the employer. Often coordinated with high schools and trade associations, these programs may allow a business to pay the worker 75% of the minimum wage while working on a part-time basis. Sign In Below. As with misclassification of an employee as an independent contractor, employers with misclassified unpaid interns face potential liability for unpaid wages and violations relating to failure to pay minimum wage, which could be significant for a full-time intern. Know the Department of Labor's six legal criteria. Nelson Law Group. Stipends paid to an intern are considered “compensation for services,” similar to regular wages. Nelson Law Group. By some accounts, there are over 1.5 million unpaid interns working in … Intern is effectively just a job title, like engineer or receptionist. Although all factors in the DOL list must be present, the one of greatest concern, in my opinion, is the fact that the intern must not displace regular employees. Because hiring an unpaid intern can be risky, many California employers begin with the Department of Labor Standards. Students can earn work experience by participating in an internship program of Labor 's six legal criteria (... 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