But since the practical experience that many interns seek is often the same work that employees perform, the US Department of Labor (DOL) dictates that they are entitled to at least minimum wage and overtime (for more than 40 hours worked in a week).
While some internships and trainee programs have not paid wages or a salary, DOL offers a six-point test to determine whether an intern qualifies for compensation. All six factors must be met in order to confirm that the program does not constitute an employment relationship.
The Test For Unpaid Interns
There are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do so without compensation. The Supreme Court has held that the term "suffer or permit to work" cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns who receive training for their own educational benefit if the training meets certain criteria. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program. The following six criteria must be applied when making this determination:
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.
If all of the factors listed above are met, an employment relationship does not exist under the FLSA, and the Act’s minimum wage and overtime provisions do not apply to the intern. This exclusion from the definition of employment is necessarily quite narrow because the FLSA’s definition of “employ” is very broad.
Having an intern (or several interns) at your business can be a mutually beneficial program for students and business owners. But it is important to consider the nature of the program and to allow a budget for intern wages when planning the program.
Considering an internship program at your landscape company? Internships can be a great way for students to get practical, hands-on experience in their chosen field of study while also earning college credit. It is also a great way for business owners to cultivate the next generation of their industry.
