Dear Workforce: How Do New Regulations on Internships Affect Our For-Profit Organization?The regulations apply to all employers—whether for-profit or not-for-profit companies. The purpose: to ensure that employers are not using the 'intern' label to avoid paying workers minimum wage and overtime.
I know that federal regulations are tightening for internships at for-profit organizations. What do we need to know?
A. Your question is a timely one, as the Labor Department is stepping up its enforcement efforts concerning student intern programs. Although media reports may focus on the use of unpaid interns at large, for-profit companies, the regulations in this area apply to all employers—whether for-profit or not-for-profit companies. The purpose of the regulations is to ensure that employers are not using the “intern” label to avoid paying their workers the minimum wage and overtime.
The Labor Department applies a six-part test to determine whether an intern program is exempt from the minimum wage and overtime requirements of the wage-and-hour laws. To pass that test, you need to understand what a qualifying intern program is, and just as important, what a qualifying program is not.
Full Story: http://www.workforce.com/archive/feature/newsletters/dear-workforce-how-do-new-regulations-internships-affect/index.php