Internships can be a benefit to the young people learning about a certain field and company, as well as the business that's helping to educate them.
However, internships involve some important restrictions that if broken can result in litigation based on the Fair Labor Standards Act. Upstart Business Journal provided some easily-digestible advice for companies considering the use of interns.
Consulting with your business' legal advisor should always be the first step taken to review possible FLSA compliance issues. Some of the specific guidelines are that internships should be educational in nature and largely benefit the intern as opposed the company, and regular employees cannot have their time and attendance replaced by interns. Additionally, interns cannot be guaranteed a job following their period of time at your organization, although they can apply and be considered for such positions.
Companies also need to understand the challenges faced by unpaid interns - the cost of living in a new area, for example. Also, diversity initiatives that may be a part of your business should be considered, as internships don't count as paid positions and have no affect on those metrics.
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