Legal Information for Internship Programs

April 6, 2016 - PRLog -- As summer approaches, many companies are looking for summer interns and many students are looking for summer internship programs. Last summer, the media showcased several internships that became legal cases because of wages. If you're a company looking to "hire' an intern, there are several factors you need to be aware of.  The Fair Labor Standards Actprovides general information to help determine whether interns must be paid the minimum wage and overtime for the services that they provide to "for-profit" private sector employers:

Background - The Fair Labor Standards Act (FLSA) defines the term "employ" very broadly as including to "suffer or permit to work."  Covered and non-exempt individuals who are "suffered or permitted" to work must be compensated under the law for the services.  Internships in the "for-profit" private sector will most often be viewed as employment, unless the test described below relating to trainees is met.  Interns in the "for-profit" private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek.

The Test For Unpaid Interns - The following six criteria must be applied when making this determination:

• 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;
• The internship experience is for the benefit of the intern;
• The intern does not displace regular employees, but works under close supervision of existing staff;
• 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;
• The intern is not necessarily entitled to a job at the conclusion of the internship; and
• The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

Similar To An Education Environment And The Primary Beneficiary Of The Activity - In general, the more an internship program is structured around a classroom or academic experience as opposed to the employer's actual operations, the more likely the internship will be viewed as an extension of the individual's educational experience (this often occurs where a college or university exercises oversight over the internship program and provides educational credit).

Job Entitlement - The internship should be of a fixed duration, established prior to the outset of the internship.  Further, unpaid internships generally should not be used by the employer as a trial period for individuals seeking employment at the conclusion of the internship period.

About Canterbury Law Group

Canterbury Law Group, formerly Edwards & Cherney LLP, was founded in Phoenix, Arizona in 2012 with dedication to providing legal counsel at the highest levels possible.  As authorities in the legal industry, the team at Canterbury Law Group was uniquely formed to provide legal counsel for cases dealing with litigation, corporate law, family law, federal bankruptcy and real estate. The attorneys also handle investigations, corporate restructurings and counsel boards of directors and senior management in legal situations. The team's attention, experience and sophistication allows for innovative resolutions that have a positive impact on clients.   For more information, visit http://www.canterburylawgroup.com.