News

What You Need to Know About Hiring Summer Interns

Whoosh. This curious sound descends upon businesses at the end of the Spring Semester, when a throng of high school and college students rush for coveted summer internships. And why shouldn’t your business open its doors for this whirlwind? Summer interns are the win/win of the workforce, giving much-needed experience to interns and providing cheap labor to businesses. Notice we didn’t say “free” labor— a common misconception in the world of Human Resources.

If your business is recruiting unpaid interns, you may be violating employment labor law!

According to the U.S. Department of Labor and the Fair Labor Standards Act (FLSA), there’s a good chance that private-sector summer interns qualify as employees. That means they’re entitled to minimum-wage compensation and overtime, just like any other employee.

Only under very specific circumstances can private-sector interns go without pay:

The internship is on par with the training an intern would receive in an educational environment;
The internship is for the benefit of the intern;
The intern does not supplant needed employees, and works under close supervision of existing staff;
The employer doesn’t immediately benefit from the intern’s activities, and operations may even be impeded;
The intern is not guaranteed a permanent position at the end of the internship; and
Both parties understand that the internship is unpaid.

All of these factors must be met to prove the absence of an employment relationship and to legally justify an unpaid internship. Many employers go wrong by using interns to supplant or bolster their workforce—that is, if not for the interns, there would be no employees to do the work. (For example, a firm consistently hires unpaid interns to file paperwork; without the interns, the firm would have to hire a file clerk.) Job shadowing, in which the intern observes a regular employee but performs minimal work, is typically allowable as training instead of employment.

Taking on interns this summer? Don’t get caught out of compliance (and don’t miss the change to give a leg up to a hard-working student and future member of the workforce!). If your business has any question about whether summer interns should be compensated, talk to the professionals at YES! Your Human Resources Solution, Orange County’s premier Human Resources consultants. Our friendly staff is here to help with all your HR-related needs, including keeping your business compliant with ever-changing employment laws and regulations. We offer a free consultation to discuss how YES! can best meet your unique business needs. For more information or to get in touch with us, check out our website!

YES! News

The “better” way to conduct layoffs

Layoffs are hard on everyone. Even as business leaders and HR professionals, layoffs are one of the hardest things we have to do. Regrettably, many of us remember this from the all-too-recent pandemic layoffs. Layoffs are a reality we may soon face again as the threat of recession looms. And while we may not have […]

Resolve conflict like a champ

We’re hard-pressed to say conflict resolution is a fun or glamorous part of a Human Resources or leadership role, but it’s one of the most critical parts. How you mediate conflict impacts employee morale and retention, and also shows your leadership abilities and your willingness to tackle the tough stuff. Your conflict resolution skills can […]

Stop! and hire this candidate

It’s easy to criticize potential hires and spot reasons why we shouldn’t hire them. That one is too arrogant, that one lacks technical skills, and that one knows nothing about the company. Process of elimination, right? But too often we fail to recognize the positive reasons why we should hire someone. Positive flags can be […]

Client Testimonials

"Kathi has been an extremely reliable, knowledgeable and indispensable resource for our growing business. Anytime we had a difficult issue or needed to refine, replace or upgrade our HR communication, Kathi provided outstanding support and feedback. She is a wonderful person and an outstanding, solution oriented communicator. I can't recommend her enough to businesses who need assistance with HR strategy and support."

"Kathi is reliable, knowledgeable, and an excellent communicator. She has always been readily available to help us with all of our immediate needs, from handbooks to policies, and notices. We highly recommend her. A great team player."

"SPMD has been partnering with Kathi for almost 4 years. She is a fantastic partner to our design firm. Her experience, knowledge, professionalism and ability to problem solve is the perfect package to fit our business. Over the years she has helped us navigate many employee situations quickly and re-wrote our Employee Handbook. Kathi is always there in a heartbeat when a situation arises and has the answers and advice we need. We highly recommend Kathi!"

“Kathi provided Senior Human Resources leadership to Orqis Medical for over six years. Her effectiveness is immediate, her contributions substantial, and her ability to integrate into the employee base as a consultant outstanding. I highly recommend Kathi to any company looking for senior management help in the HR arena, without the ability to hire a full-time manager. This is a go-to person for any small, medium, or start-up company.”

Free Consultation