5 Things You Need To Know: Hiring Interns


3. Weigh the pros and cons.

Compensating your interns can actually affect your company in positive ways. Paying students motivates them to do good work. Also you run the risk of managers who underutilize or devalue unpaid interns. Are those who work with an intern as likely to utilize one who is unpaid as well as one who is? Will an unpaid intern remain motivated enough to do their best work?

4. Focus on the training aspect.

Remember that the goal of an internship is training a promising, hard-working student, not getting free labor. Employers have an obligation to train. While offering compensation might make it easier to comply with the law, you don’t necessarily have to if you meet the six criteria. If unpaid, the employer has that much more of an obligation to incorporate training efforts.

RELATED: Is Your Unpaid Internship Program Legal?

5. When in doubt, consult a lawyer.

Improper classification of an intern can be a costly mistake for a small business. If you have questions or you’re not completely sure, check out the Department of Labor website or consult with an experienced labor and employment attorney.

If you definitely feel you want to go the unpaid route consider such options as working with colleges and universities that actually bear the responsibility for compensating student interns. Many schools operate internship programs through their career services offices (in exchange for student credits). Getting registered with one of these programs can provide a level of accreditation as well as access to a pool of motivated and screened talent.

DOL’s Test for Unpaid Interns

The following six criteria must be applied:

  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; and
  6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

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