The
decline of the unpaid internship has hurt businesses, nonprofits, educational
institutions, and students in the years following new rulings and regulations
from federal Fair Employment and Housing, the IRS, and over-regulated states
like California.
While leading nonprofits I
have been asked on many occasions to take on unpaid interns. As one who tries
to do the right thing in the right manner, early on my research revealed that
many internships are handled under the radar and put the nonprofit or business
at great potential risk and liability. An officially authorized internship via
an academic program which provides credit for the internship is merely an initial
requirement. There are strict criteria by which the internship must be
controlled:
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 that provides the training derives no immediate advantage from the
activities of the intern; and on occasion its operations may actually be
impeded.
5.
The
intern is not necessarily entitled to a job at the conclusion of the
internship.
6.
The
employer and the intern understand that the intern is not entitled to wages for
the time spent in the internship.
Internships
are not only limited federally, but state Worker Compensation is also applied
if the internship is not properly authorized and covered through an academic
institution’s insurance.
Locally, CA State Long Beach has established a formal
application and authorization agreement between itself, the professor, student,
and employer – thus protecting all parties from liabilities. Even so, there
have been numerous rulings against nonprofits and businesses wherein compensation
and fines have been levied. Not to mention the intern who feels slighted and sues
the employer for compensation, overtime and/or Worker Compensation benefits.
While these
regulations were put in place to protect the intern and internship program from
being abused, they unintentionally serve to decrease educational and on the job
training opportunities and reduce the involvement of students in nonprofits – thus
reducing the practical training and skills for college graduates to take into
their careers.
I
caution the business and nonprofit who may wish to utilize interns in their
workforce to step into this area fully aware of the regulations and potential
cost of violations. Do the right thing in the right manner . . . and both you
and the intern will benefit.
Oh . . .
and especially don’t have them make the coffee or be your go-fer.
Some helpful links:
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