Many entertainment businesses are getting ready to hire summer interns. These internships can be rewarding for the college student as well as provide some help to the business. Offering paid or non-paid internships can create risk for your business. If the interns are receiving wages, they will be considered employees of the company, and eligible for workers’ compensation insurance coverage under your current policy. If the interns are not receiving wages, you should check with your workers’ compensation insurance carrier to make sure they are covered for workplace injuries.
The Department of Labor (DOL) recently updated their requirements for interns.
- Even though it includes actual operation of the employer’s facilities, the internship is similar to training that would be given in an educational environment.
- The internship experience is for the benefit of the intern.
- The intern does not displace regular employees, but works under close supervision of existing staff.
- The employer providing the training derives no immediate advantage from the activities of the intern and, on occasion, its operations may actually be impeded.
- The intern is not necessarily entitled to a job at the end of the internship.
- The employer and the intern understand that the intern is not entitled to wages for the time spent interning.
Businesses need to evaluate their internship program to ensure they meet the DOL criteria and any applicable state laws. Unpaid internship programs should be designed to provide an educational experience.
It is important to use an agent with commercial experience to help your business find the right combination of coverage, price, and service.
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