06/ 15/ 2007
by Beth Gaudio, NFIB Legal Foundation
Almost every industry has peak periods when some extra help around the office would be welcome. Fortunately, if that time of year is during the summer months, you may be able to forge a mutually beneficial relationship with some temporary help through either summer interns or teenage employees.
How to make the most of interns
Internships have become almost a rite of passage for college students hoping to explore potential careers, network and make connections, or gain work experience. In return, interns bring much needed enthusiasm and energy to the workplace at little to no cost. According to one study, unpaid interns save businesses almost $124 million a year.
Keep in mind that you pay for what you get. You should decide whether your company has the resources to offer paid internships, either with an hourly wage or stipend. If an unpaid internship is the only option, here are some things to consider:
Salary versus compensation: The term "unpaid" is a misnomer, because interns must receive some form of compensation. Under the Fair Labor Standards Act (FLSA), interns do not have to be paid minimum wage, but labor laws require that interns receive something in return for their work. Check with the students' schools to join any pre-established internship programs that provide class credit, tuition credits or scholarship assistance at no cost to your company. Otherwise, the following list of factors can help you determine whether the training interns receive can serve as adequate compensation in compliance with the Department of Labor's rules and regulations:
- Training is similar to a vocational school or academic educational instruction.
- Training is for the benefit of the students.
- Students do not displace regular employees, but work under close observation by employees.
- As the employer providing training, you should derive no immediate advantage from the activities of the students.
- Students are not necessarily entitled to a job at the conclusion of the training period.
- Both the students and your company clearly understand that the students are not entitled to wages for the time spent in training.
Value for value: Ideally, the intern should perform more significant duties than just photocopying and fetching coffee. Employers should work hard to provide a meaningful learning experience for interns, so that at the completion of an internship, students will recommend your company to future students. Providing a well-rounded experience may even bring a valuable intern back to your company someday as a valuable employee.
Hiring teenage employees
With the arrival of summer, many teenagers will have to choose how to spend their free time. This can be an advantage to your small business if you scrupulously follow federal and state guidelines in your hiring.
Children of any age are generally permitted to work for businesses entirely owned by their parents, with a few exceptions for mining, manufacturing and hazardous occupations (listed at http://www.dol.gov/esa/regs/compliance/whd/whdfs43.htm).
Children under 14 years of age may not be employed in non-agricultural occupations covered by the FLSA. Permissible employment for this age group is fairly restricted to FLSA-exempt work, such as delivering newspapers, acting, casual babysitting or household chores.
Youths between the ages of 14 and 15 may be employed in a variety of non-manufacturing and non-hazardous jobs but only for limited periods of time and under specified conditions. Their hours must be limited to no more than eight hours a day and totaling no more than 40 hours a week during the summers. However, teens between 14 and 15 years may not work past 9 p.m.
Given these limitations, hiring teenagers as typical full-time employees will require hiring 16- and 17-year-olds, who may be employed for unlimited hours in any occupation other than those declared hazardous by the Secretary of Labor. Once a teenager reaches 18 years of age, he is no longer subject to the federal youth employment provisions, and you can hire freely without concern.
However, keep in mind that both federal and state laws govern the employment of young workers and, when both are applicable, you must follow the stricter law. Check with your state labor department for your rules in your state. If you are found to be in violation, your company may be subject to a civil penalty of up to $11,000 for each minor employed in violation or even face criminal prosecution. In addition, the Department of Labor may seek an injunction against the shipment of any goods that were produced by teenagers in violation of the FLSA's youth employment provisions.
A web of interconnected regulations is involved when hiring students, whether in high school or college. However, with the right approach, you and your business can benefit today from the next generation of entrepreneurs.
