01/18/2018

Labor Dept. relaxes rules on unpaid internships

By Dennis Hetzel

Following up on court decisions, the U.S. Dept. of Labor has modified requirements for unpaid interns that may make it easier for many employers to have an unpaid internship program with less concern that the interns could be classified as employees entitled to compensation.

Two of the key requirements are that the intern’s training be similar to what the intern would receive in school and that the work not displace the work of paid employees. The major relaxation of the rules is that the feds now say that the work can “complement” the work of paid employees versus the earlier, almost unattainable standard that the work couldn’t have immediate value to the employer.

Below are two links with additional information. If you are considering an unpaid intern program, we recommend consultation with your attorney to make sure your program conforms with federal and Ohio statutes.

U.S. Dept. of Labor fact sheet:
https://www.dol.gov/whd/regs/compliance/whdfs71.htm

Los Angeles Times article:
http://www.latimes.com/business/la-fi-unpaid-internships-20180112-story.html