{"id":3847,"date":"2015-06-12T16:00:13","date_gmt":"2015-06-12T23:00:13","guid":{"rendered":"http:\/\/thinkapps.com\/blog\/?p=3847"},"modified":"2015-06-12T16:14:53","modified_gmt":"2015-06-12T23:14:53","slug":"guidelines-unpaid-internships","status":"publish","type":"post","link":"https:\/\/thinkapps.com\/blog\/post-launch\/guidelines-unpaid-internships\/","title":{"rendered":"How to Avoid Landing in Hot Water Over Unpaid Internships"},"content":{"rendered":"

The longest astronomical day of the year marks the beginning of summer for the majority of the Northern Hemisphere. However, there\u2019s a population whose summer begins around the last week in May, after their last class lets out: college students<\/em>. Some will hit the beach, others will hit the keg, but the smart ones will be gaining hands-on experience as interns.<\/p>\n

\"College<\/a><\/p>\n

I know exactly what you\u2019re thinking \u201cYes, free labor! Now bring me my coffee, servant!\u201d<\/p>\n

While the idea of having someone around to do the grunt work of the company at no cost to you might be enticing, it\u2019s also wrong. In fact,\u00a0you could be breaking the law<\/a> if you only compensate your interns with pats on the back and the occasional free lunch this summer.<\/p>\n

Startups are usually fast-paced environments requiring\u00a0a lot of hustle. After all, there’s\u00a0a lot to do and little time to do it. Many entrepreneurs, especially at early-stage startups, are guilty of bringing on interns just to make up for the intense workload that often comes with the territory.<\/p>\n

Employees at your company are probably asked to wear more than one hat. So when an eager intern shows up,\u00a0it\u2019s easy to throw a bunch of tasks at them\u00a0and have them\u00a0run off on their own. But be aware that this could land you in hot water.<\/p>\n

Don\u2019t get me wrong \u2014 there is such a thing as a completely legal, unpaid internship. However, the internships we\u2019re used to seeing at startups (and the internship you were thinking of offering at\u00a0your company this summer) don\u2019t usually emulate a program that provides the educational experience interns are seeking.<\/p>\n

Ugly Ducklings<\/h2>\n

Who am I kidding? Most interns aren\u2019t looking for a completely<\/em> educational experience.<\/p>\n

Their friends are all having fun\u00a0at someone\u2019s parent\u2019s timeshare in South Padre Island, Texas. They can\u2019t open their Instagram feed without a little piece of themselves hating you for founding this stupid company and holding them captive over the summer.<\/p>\n

In many cases, they\u2019re looking to bulk up their resume. Some\u00a0would probably even be happy if you told them they didn\u2019t really have to stay,\u00a0as long as you signed\u00a0a paper saying they worked there over the summer \u2026 in case anyone ever asked.<\/p>\n

But every once in a while you\u2019ll get those really motivated and ambitious\u00a0interns. Just ask Fox Searchlight \u2014\u00a0they got 100 of them.<\/p>\n

In 2011, ex-interns who worked on the set of \u2018Black Swan\u2019 sued Fox Searchlight and Fox Entertainment Group<\/a>. They claimed that the internship environment wasn\u2019t conducive to a learning experience and were therefore entitled to wages.<\/p>\n

A Manhattan district court judge agreed in 2013, ruling in favor of the former interns<\/a>. (The case is now on appeal to\u00a0New York’s 2nd\u00a0Circuit Court of Appeals.)<\/p>\n

\"Intern<\/a><\/p>\n

Education Is Key \u2026 To Not Getting Sued<\/h2>\n

Remember why your interns are there \u2014 to learn. While they should arrive with\u00a0some prior knowledge on the subject matter, they should still receive on-the-job, hands-on training. The law requires it.<\/p>\n

If you won\u2019t personally be instructing your summer interns, make sure that you put them under the supervision of someone who you know will provide them with adequate training. Have them nurture the new help with knowledge that can only be learned through in-field experience.<\/p>\n

On their first day, have the intern\u2019s supervisor explain what her own typical day looks like, her\u00a0educational background, and how she\u00a0landed the position at your company.<\/p>\n

Depending on how long the supervisor has been there, she\u00a0should explain how your company did\u00a0things when she first started, how you\u00a0do them now, and why the latter\u00a0is better.<\/p>\n

Explain any software or tasks that may be new or unfamiliar to the intern and give them a good sense of what will be expected of them in case they have any questions early on.<\/p>\n

Summer = Vacations<\/h2>\n

Be mindful of how all of your paid employees will be spending their summer during the internship period. Under federal law, an unpaid intern cannot replace any paid employee<\/a>. Meaning, if one of your employees is on vacation or on leave, your intern cannot pick up their duties as part of their program.<\/p>\n

Since summer and vacation-time with family often go hand-in-hand, be extra careful about allocating tasks to your intern that may mirror those of your absent employee, as this may work against you in the event that there\u2019s a formal complaint.<\/p>\n

Don\u2019t Worry, You Have Rights Too<\/h2>\n

As the employer, you also have some rights.<\/p>\n

First, it’s important to remember that just because they got the internship doesn\u2019t mean you need to hire them after it’s\u00a0over. (This may seem obvious, but it was unclear\u00a0enough to some people that they had to write it into law.)<\/p>\n

Also, you don\u2019t have to provide the intern with any job benefits as part of them being under the instruction of your company for the summer.<\/p>\n

Some companies do provide extra perks as part of the internship program like\u00a0free meals, living assistance, or commute allowance.\u00a0For example, interns at Facebook\u00a0are\u00a0rumored<\/a> to be included\u00a0in the company’s weekly happy hour. But these are only perks and not a necessary part of the company-intern relationship.<\/p>\n

\"World<\/a><\/p>\n

Image credit<\/a><\/em><\/p>\n

Copernicus Was Wrong<\/h2>\n

Working for no monetary compensation or for an equity stake (in something that doesn\u2019t even really exist yet) is such an engrained part of startup and entrepreneurial culture that it\u2019s easy to assume everyone has this same all-in attitude about life.<\/p>\n

But for the next few months, the world revolves around your interns, and they might not share your vision yet.<\/p>\n

Remember that you and your startup are there to benefit the intern, not for the intern to benefit you. <\/strong><\/p>\n

In fact, Department of Labor guidelines\u00a0clearly state that employers should enter into internship programs\u00a0knowing that operations may actually be impeded during the period, rather than improved.<\/p>\n

Yes, they might actually get in the way more than help out, and\u00a0you have to be okay with running that risk. It can help to remember that, at the end of the day, you may actually be polishing a diamond in the rough.<\/p>\n

As your company grows, your new summer intern will hopefully grow with it. The same 22 year-old who\u2019s fetching your coffee today\u00a0might become\u00a0your VP of Digital Marketing quicker than you can say \u201cIPO.\u201d<\/p>\n

For many\u00a0startups, it makes\u00a0more sense to just pay their interns instead of having to worry about staying within the legal parameters. Plus, it’ll help your company to garner a lot of goodwill with a highly-sought-after talent pool after graduation.<\/p>\n

But in case you do decide to bring on the \u201cfree\u201d labor, here is a recap of the six legal guidelines provided by the Department of Labor<\/a>\u00a0for maintaining a legitimate, unpaid internship program:<\/p>\n

1) \u00a0The 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;<\/p>\n

2) \u00a0The internship is for the benefit of the intern;<\/p>\n

3) \u00a0The intern does not displace regular employees, but works under close supervision of existing staff;<\/p>\n

4) \u00a0The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;<\/p>\n

5) \u00a0The intern is not necessarily entitled to a job at the conclusion of the internship; and<\/p>\n

6) \u00a0The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Department of Labor has strict guidelines for unpaid internships. Here’s everything startup founders need to know to avoid landing in hot water.<\/p>\n","protected":false},"author":51,"featured_media":3894,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[125,100,277,278,16,101],"acf":[],"yoast_head":"\nStartup Guidelines for Unpaid Internships<\/title>\n<meta name=\"description\" content=\"The Department of Labor has strict guidelines for unpaid internships. 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