unpaid "intern"

MrCreosote

We have one paid intern who will graduate with his BA in Marketing in June and leave us then. He has asked me for advice about an offer he has received and I will paste his question here:

" I had an interview and was told that I would need to start at an intern level before the possibility of a full time position. The intern is unpaid but only needs between 15 and 20 hours a week. Is it possible for a firm to hire an "intern" after graduation without pay? I perceived the position to be somewhat of a training period but not all interns are given the option of a full time position."

He will not be in school at this time and will not earn credit for the "internship." My feeling is that he should stay very far away from this company and that it's illegal for them to have him work for free.

I'm just looking for a second opinion and would appreciate your thoughts.

sonny

I'd tell him to keep looking. . doesn't sound right to me.

Don D

I don't know that it's illegal. Sounds as if they are seeking volunteers. I agree with you that he should not consider this 'opportunity'. It's insulting at best.

kjsnyder

Generally, under the Fair Labor Standards Act (FLSA), any person who is “permitted” to work for the advantage of the employer is considered an employee and must be paid. However, the fact that a person performs some type of work for an employer does not necessarily mean they must be treated as an employee.
The Department of Labor (DOL) has set out some guidance on this issue in its regulations and Wage and Hour opinion letters interpreting the FLSA. According to the DOL, a person may be considered a “trainee” or a student and not an employee entitled to minimum wage and overtime under the FLSA if all of the following six criteria are met:
1. The training the person receives is similar to that which would be given in a vocational school.
2. The training is for the benefit of the trainee or student.
3. The trainee or student does not displace regular employees, but works under their close supervision.
4. The employer that provides the training does not derive any immediate advantage from the activities of the trainee or student, and on occasion its operations may be impeded.
5. The trainee or student is not necessarily entitled to a job at the conclusion of the training period.
6. The employer and the trainee or student understand that the trainee or student is not entitled to wages for the time spent in training.
So, if the students are receiving training that benefits them, rather than the employer, and the training furthers their educational goals, the DOL typically will not consider them to be employees. Similarly, if the students receive academic credit for their work, they likely will not be considered employees. In addition, these students may be paid a stipend and still not be considered employees as long as the stipend does not exceed a reasonable estimate of the students’ expenses.
On the other hand, if the students are doing work normally performed by other employees and receive little supervision or training, and the employer gains an immediate benefit from the students’ work, they probably should be treated as employees under the FLSA.

Hope this helps.