With summer vacation around the corner, many companies are looking to hire unpaid interns. If your company is considering an unpaid internship, be sure to carefully structure the internship to avoid running afoul of the Fair Labor Standards Act (“FLSA”). A few general principles may be gleaned from recent court decisions in which courts have addressed whether an unpaid internship violates the FLSA. Generally, an unpaid internship is considered compliant with the FLSA if it is structured such that it offers more of an educational benefit to the intern than it does a utilitarian benefit to the company. Further, as a practical matter, unpaid internships that offer school credit are generally considered compliant with the FLSA. To reduce potential liability, employers should consider the following five guidelines for unpaid internships:
You can read the full post, view and subscribe to the blog by going to: www.hrlegalist.com.