Unpaid Internships
Posted on Jun 15, 2009 on Tips of the Month by
With final exams over, many students are eager to gain real world experience through internships. Meanwhile, employers looking to save money while getting some extra summer help are happy to offer this real world experience in the form of unpaid internships.
However, in order to comply with the Fair Labor Standards Act (FLSA) (the federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment), employers must make sure their unpaid internship programs and their unpaid interns meet all the necessary criteria under the law.
While hiring unpaid interns can be a great money saver, failing to comply with the FLSA (and other applicable federal and state laws) can result in costly fines and penalties.