b'Unpaid Interns, Volunteers and TraineesWho, What, Why . . . Who does it apply to:Every employer who has or intends to hireWhatabouttruestudentinterns:Studentinternsarenot unpaid interns. evaluated differently by the DOL. They should easily meet the trainee test. That said, there are special rules for individuals When must an intern be paid: All employees of a businesswhohavecompletedaprofessionaldegreelikephysicians, must be paid at least minimum wage unless they are a traineeattorneys, and therapists, generally allowing them to volunteer under the law, regardless of whether they are called an intern. their time as they choose.So,whatmakesatrainee?TheU.S.DepartmentofLabor (DOL) has established a seven-factor test couched in terms ofWhat do these factors really mean: The more an internship the primary beneficiary to determine whether an unpaid internprogram can be structured around an academic-type experience should be considered an employee or trainee under the Fairthe better. It is better if the employer can provide the trainee Labor Standards Act (FLSA). The test considers the extent towith skills applicable to various employment settings, not just which:skillsparticulartotheemployersbusiness.Essentially,theThe trainee and employer clearly understand there is noemployerneedstoprovidetheinternwithvaluabletraining. Ideally,thetrainingwouldmakethemmoremarketablein expectation of compensation; the open job market. The employer must pay any intern used The training is similar to that which would be given in anas a replacement for a regular employee or to reduce their educationalenvironment(includingclinicalandhands-onworkload. The trainee should receive more supervision than a training); regular employee. If the employer would have to hire additional Thetrainingistiedtothetraineesformaleducationbyemployees if the trainee were not performing certain work, the integrated coursework or receipt of academic credit; trainee would be considered an employee. Dont rely on unpaid The trainees academic commitments are accommodated; interns to do work of any real significance to your business. Thework done by an unpaid intern should be secondary to theirThe internships duration is limited to the period in which ittraining. A trainee hired by an employer on a trial basis withprovides the trainee with beneficial learning; the expectation that they will eventually be hired full-time will The trainees work complements the work of paid employeeslikely be considered an employee under the FLSA. Employers while providing significant educational benefit to the trainee;should indicate prior to the start of the internship that there is no and guarantee or expectation of hiring the interns upon completing the internship. A written agreement indicating this is advisable. ThetraineeandtheemployerunderstandthereisnoEmployers should indicate prior to the start of the internship entitlement to a paid job at the end. that there is no intention to pay the intern. A written agreement indicating that the intern will not be paid and does not expect to When can I hire an unpaid intern or volunteer: The seven-factorbe paid is advisable.test is primarily used in the private for profit sector. State and localgovernmentagenciesandnon-profitorganizationscanWhat happens if I dont follow the test:An employer violating the generally utilize interns or volunteers without an obligation to payrule is subject to the same damages available to an employee them under the FLSA. It is important, though, that the volunteerswho is not paid all of the wages they are owed. This may include understand they are not to be paid for their time. Volunteer workminimum wage and overtime for all hours worked, plus an equal at non-profit, religious, charitable, and civic organizations haveamount in liquidated damages for all interns over the past two specifically been cleared by the Texas Workforce Commission.or three years.5'