That Free Labor Might Cost You
If you are feeling like your business could use some extra hands, you may be thinking about bringing on some summer interns. These enthusiastic workers can be a great resource to a business, and in many cases can offer free labor. There are, however, some regulations around what makes a worker exempt from the usual federal labor laws, like minimum wage. In order to ensure your intern is exempt, make sure that:
- The training (e.g. the time your intern spends at your business) is similar to what would be taught in a vocational school. While you will still train your intern on the operation of your company, it is important that you ensure that the training is also generally educational and teaches skills that could be transferred to other jobs.
- The training is offered for the intern’s benefit.
- The intern is not brought onto the staff in order to replace an existing employee. Instead, he or she will work under the close supervision of the existing employees.
- The employer does not get a direct benefit from the activities of the intern. In fact, if you can show that your operations were impeded by bringing on your intern that will best help you meet this requirement.
- The intern is not guaranteed a job at the end of the internship period.
- Both you and the intern acknowledge that the intern is not entitled to payment for the time he or she spends in training.
If you have issues arise due to your summer interns, would your commercial insurance be sufficient to protect your business? To get the coverage you need to best be safeguarded against liabilities, contact Hoffman Brown Company in Sherman Oaks. We can help you set the right insurance coverage in place to protect your California company. To get the expert insight into the right policy for your business, call us today!