Thinking about hiring a college kid to help you out this summer? If you are, you probably thinking about hiring him or her as an intern.
Before you start posting on college job boards, be sure if you meet the requirements under the federal Fair Labor Standards Act. A summer intern is treated as your employee and must be paid for work at no less than the applicable minimum wage.
Hoping they will work for college credit instead of cash? An intern can be unpaid only if all of the following six factors (taken from a Department of Labor Factsheet) apply to your situation:
1. The 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;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under close supervision of existing staff;
4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
You should also check out the Wisconsin Department of Workforce Development’s Guide here before hiring an intern as well.
Jéneen R. Perkins is a freelance accountant and consultant serving entrepreneurs, families and small businesses. She prides herself in being fluent in English instead of “Accountant-ese”.
"Putting My Money Where My Mouth Is" is a journal about real life experiences and concerns of Jéneen R. Perkins. The purpose of the blog is to exhibit the real life challenges and answer the tough questions posed by the concepts of business, entrepreneurship and money.