Legal Tips For Handling Workplace Summer Internships
Summer internships are an excellent opportunity for students and young professionals to gain hands-on experience in their fields of interest. For employers in La Crosse, Sparta, and surrounding areas, offering internships can enhance their workforce and contribute to the community by providing valuable learning opportunities. However, hosting interns comes with a set of legal responsibilities that employers must understand to ensure compliance with labor laws. Bosshard Parke is here to guide local businesses through the intricacies of legally sound internship programs. Here’s what you need to know about the legal aspects of hiring summer interns.
Understanding The Legal Framework For Internships
The primary legal consideration when setting up an internship program is distinguishing between an intern and an employee. This distinction is crucial as it affects wage requirements, benefits, and protections under labor laws. The Fair Labor Standards Act (FLSA) provides guidelines that help determine whether an intern is considered an employee entitled to minimum wage and overtime pay.
The Primary Beneficiary Test
The U.S. Department of Labor uses the “Primary Beneficiary Test” to assess whether an intern should be paid like an employee. The test considers several factors:
- Expectation of Compensation: If the intern expects compensation, the relationship is more likely viewed as employment. Conversely, if the intern volunteers their services in exchange for training or experience, they may not qualify as an employee.
- Educational Benefits: The internship should provide training similar to that given in an educational environment, including the clinical and other hands-on training provided by educational institutions.
- Integration with Coursework: The internship should be tied to the intern’s formal education program by integrated coursework or receipt of academic credit.
- Duration: The duration of the internship should be limited to the period during which the internship provides the intern with beneficial learning.
- Work Benefit: The intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.
- Entitlement to a Job: The intern should not be necessarily entitled to a job at the conclusion of the internship.
- Mutual Understanding: There should be a clear understanding that the intern is not entitled to wages for the time spent in the internship.
Drafting Internship Agreements
A well-crafted internship agreement is essential to clarify the terms of the internship. This agreement should detail the expectations and responsibilities of both the intern and the employer. It should clearly state whether the internship is paid or unpaid, based on the Primary Beneficiary Test, and outline any compensation arrangement. The agreement should also specify the duration of the internship, any job-related benefits, and terms related to confidentiality or intellectual property, especially in research-heavy or creative fields.
Compliance With Wage Laws
If an intern qualifies as an employee under the FLSA, they must be paid at least the minimum wage and overtime as applicable. Wisconsin’s minimum wage mirrors the federal rate ($7.25), and employers must adhere to this unless local ordinances specify a higher wage. For unpaid internships, it is crucial that the arrangement strictly adheres to the guidelines so that it is clear the intern is not an employee.
Providing A Safe And Inclusive Work Environment
Interns, whether paid or unpaid, are entitled to a safe working environment free from discrimination and harassment. Employers must ensure that interns are familiar with workplace policies that prohibit discrimination and explain procedures for addressing complaints.
Summer Internships And Academic Credit
Many educational institutions partner with employers to offer internships that provide academic credit. These arrangements typically require the employer to fulfill certain educational criteria, often outlined by the school. It’s important for employers to understand these criteria and ensure that the internship program meets educational objectives and complies with academic standards.
Conclusion
Implementing summer internships require careful attention to legal details to ensure compliance and create a productive experience for both the intern and the organization. By understanding and adhering to labor laws, drafting clear internship agreements, and maintaining an educational focus, employers can provide valuable opportunities that nurture the next generation of professionals.
At Bosshard Parke, we are dedicated to helping businesses across the Coulee Region navigate the complexities of employment law, including the proper management of internship programs. For expert legal advice on setting up or managing an internship program, do not hesitate to contact us.
Disclaimer: This article is for informational purposes only and should not be considered legal advice. For personalized guidance on hosting interns and complying with labor laws, please consult with a qualified attorney at Bosshard Parke.