Internships are a great way for students to build new skills and gain experience. Although interns are often unpaid, internship programs are still subject to federal and state labor laws. Whether you are a new startup or a seasoned business owner, it’s important to know the legalities of labor laws, especially when offering unpaid internships.
Fair labor standards act guidelines
One common misconception among employers about internships is that many think that they do not have to pay interns or can simply hire internship candidates as contractors. This isn’t necessarily true. If the internship does not satisfy the test for an unpaid internship, interns must be paid as an employee. However, it’s possible that an intern could be deemed a contractor, which is unlikely in most cases.
