If you plan to pay your interns at least minimum wage, you’re in good shape. If, however, you are planning to offer an unpaid internship, there are a few things you should consider.

Federal and state governments are cracking down on the use of unpaid interns, arguing that not paying interns for their labor violates the Fair Labor Standards Act (FLSA). 

Even if you and your intern agree that the work experience is sufficient compensation for the labor, you must satisfy the requirements for it to be “bona fide” and thus qualify as an unpaid internship. 

You may be subject to wage and hour penalties and back wages under the FLSA if you fail to pay your summer interns appropriately.

The Wage and Hour Division of the US Department of Labor’s Fact Sheet #71 offers help for determining whether your intern is entitled to minimum wage or overtime pay and can be found here: https://www.dol.gov/agencies/whd/fact-sheets/71-flsa-internships

For the record, we are strong proponents of internships, particularly as a means of identifying and developing new talent and future employees.  Good luck!

The Workplace Advisors is BSCAI's endorsed HR partner, providing HR support, recruiting and employee engagement services. For a link to our menu of services for BSCAI members, go to www.TheWorkplaceAdvisors.com/BSCAI