Requirements for an Unpaid Internship
Unpaid internships may be a good way to get free work done at your business, but not all internships are legal. According to Steven Greenhouse of The New York Times, the company could be fined if the internship doesn't follow the rules. For an unpaid intern to be considered a trainee, rather than an employee, the position must follow all six requirements designated by the U.S. Department of Labor.
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Similarity to Vocational School or Educational Instruction
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In order for the internship to be considered training rather than employment, the Training and Employment Guidance Letter No. 12-09, written by the Employment and Training Administration Advisory System of the U.S. Department of Labor, requires the internship training be similar to what would be learned in vocational school.
Internship Benefits Trainee
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To qualify as an unpaid intern, the trainee needs to benefit from the internship. This is especially the case if the skills learned during the internship can help the intern at other companies in the industry and not just at the employer providing the training.
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Interns Don't Replace Employees
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Guidance Letter No. 12-09 requires that interns not replace or displace company employees. If they do, then the intern would instead be considered an employee and not a trainee, therefore requiring at least a minimum wage.
No Immediate Advantages to Employer
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The employer providing the unpaid internship should derive no immediate benefit or advantage from the activities of the intern. In fact, the Guidance Letter No. 12-09 suggests that employers may even be impeded by the training of an intern, on occasion.
Intern Not Entitled to Job
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A trainee going through an unpaid internship isn't necessarily entitled to a job with the company once the internship is complete, according to the guidance letter.
Intern Not Entitled to Wages
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In order to be accepted as a trainee rather than an employee, both the intern and the employee should understand that the trainee is not entitled to wages during the internship. This should be agreed upon before the internship starts.
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