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Managing Internships: Paid and Unpaid

Summary

In 2010, the Department of Labor clearly defined the criteria of an unpaid internship under the Fair Labor Standards Act (FLSA), ensuring employers do not use unpaid interns as free labor. Consequently, a few well-publicized lawsuits by unpaid interns against employers have caused organizations to reevaluate their internship programs. This white paper takes a closer look at managing the unpaid and paid internship, including examining the FLSA's six criteria for unpaid internships, deciding whether an internship will be paid or unpaid, and addressing the compliance issues associated with paid internships: recordkeeping, overtime, and if applicable, the employment of minors.

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