Interships paid or unpaid?

SamanthaQ · April 2003

We currently have an intern through a local college who is an intern for us. The program is an "unpaid" internship. However, when I read the FLSA my understanding that when an employer receives advantage from the tasks that the intern performs then the intern should be paid. Our intern is currently helping reconcile some General Ledgers in our Accounting Department. Does anyone have words of wisdom on what you do for interns - paid or unpaid? Is unpaid a good idea ever?

HRGirl · April 2003

My company has had interns and co-ops. We pay them.

I on the other hand was an intern once (many moons ago) and received the big goose egg.

jimlegal · April 2003

We have used interns in the past and they were not paid.

Rockie · April 2003

If this is a formal intership program through a college, the college usually bills the employer and pays the intern a stipend. If you simply got the employee through a college "job posting board" or whatever, I would say they needed to be paid through your payroll.

HR inWA · April 2003

We have taken the stance that an intern either receives school credit for their internship or they are a paid employee. If they receive school credit, they must have an intern agreement signed by their school advisor letting us know what their goals are, when the internship starts & ends, what requirements are placed upon the student as well as what the requirements are of the intern supervisor here at the worksite. One thing to note... our internships really are internships... provided for the students to learn about our industry. Is your intern an accounting student? If not, they probably aren't an intern...

njjel · April 2003

Maybe they are a volunteer!

Moria · April 2003

We usually have between 8 - 10 interns each summer. We provide them with room and board and a small stipend, plus an educational experience. They assist either our educators in a classroom setting or do archaeological field and lab work. They are NOT paid through our regular payroll.

HR in PA · April 2003

We had an intern from a local college last summer working in our accounting department. We paid her the rate which we would pay an entry level employee in the department.

SamanthaQ · April 2003

I checked with our counsel and she said that if we have a program and an application that states that the internship is unpaid, it is for the benefit of the intern and that there is no expectation of employment upon commencement of the internship we should be ok. The above is stated on an internship application we use and the intern must sign the application (which includes the acknowledgement). Our counsel also mentioned that an intern cannot be used to replace a regular position. I do find most often that interns would of course rather take internships where they are paid.

Thanks for everyone's responses!

Interships paid or unpaid?

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