Hello, and welcome to Training with LegalEase. Today’s topic is about summer interns. We will answer the question that we often receive this time of year: Must I pay my summer interns?

Let’s talk about it.

Under the Fair Labor Standards Act, a summer intern is considered an employee like all other employees and is, therefore, entitled to receive pay. However, the federal statute does provide for an exception, if you meet of the requirements of the statute.

The general purpose of your internship program must be to benefit the student, not the company. You must set out to train the student.  

Now, let’s review  some specific requirements of the Fair Labor Standards Act.

1. You cannot agree to compensate the intern currently or in the future. No compensation of any type, which includes something as simple as a gift card.  Don’t make any promise to pay.
2. You must provide training. You need a formal training program that actually provides the student with academic credit, or you can link your training program to a different (outside) program that provides academic credit.
3. Finally, the intern’s  work must complement the work performed by your regular employees, but it should not be the same work that your employees perform.  Summer interns should complement your employees without doing their jobs.

If you meet these requirements of the Fair Labor Standards Act, then you will not be required to pay summer interns.

If you have any questions, give us a call. We will be happy to help you structure your summer internship program so that you can comply with federal and state law. Thank you for joining.