Legal Aspect of Hosting an Intern

Liability Insurance

Students completing an internship for credit are covered under Messiah's liability insurance policy.

U.S. Department of Labor Wage and Hour Division Standards

The U.S. Fair Labor Standards Act (FLSA), which applies to all companies that have at least two employees directly engaged in interstate commerce and annual sales of at least $500,000.00, severely restricts an employer's ability to use unpaid interns or trainees. It does not limit an employer's ability to hire paid interns. (See Fact Sheet #71 from the U.S. Dept. of Labor- https://www.dol.gov/agencies/whd/fact-sheets/71-flsa-internships)
Though it is not required that you pay your interns, we ask that you strongly consider offering some sort of monetary compensation. Many students work their way through college and often give up a paying part-time position to take an internship, so receiving some form of remuneration is appreciated. If your organization (for-profit or non-profit) is unable to offer a regular wage, please consider compensating the student with a stipend or consider paying for internship-related expenses such as parking fees, mileage, meals, etc.

Criteria/Test for Unpaid Interns

Courts have used the "primary beneficiary test" to determine whether an intern or student is, in fact, an employee under the FLSA. In short, this test allows courts to examine the "economic reality" of the intern-employer relationship to determine which party is the "primary beneficiary" of the relationship. Courts have identified the following seven factors as part of the test:

The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee-and vice versa.
The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions.
The extent to which the internship is tied to the intern's formal education program by integrated coursework or the receipt of academic credit.
The extent to which the internship accommodates the intern's academic commitments by corresponding to the academic calendar.
The extent to which the internship's duration is limited to the period in which the internship provides the intern with beneficial learning.
The extent to which the intern's work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.
The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship.