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To Pay or Not To Pay... That is the Question

Guest post by: Marijo McCarthy

Article Overview: It must sometimes seem as though government bureaucracy and regulation exist simply to torture the hard-working small business owner. Many of my clients find themselves with an interest in bringing on a summer intern or two, paid or unpaid, and are faced with even more "dos and don'ts" from the state and Federal government! What's a struggling small business to do?

To Pay or Not To Pay... That is the Question

It must sometimes seem as though government bureaucracy and regulation exist simply to torture the hard-working small business owner.

My newsletter topics over the past months must certainly leave that impression, as my clients have struggled with whether they could hire independent contractors (April 2010), whether they could hire a new employee who might still be subject to a non-compete agreement (Februrary 2010), and how to safely and legally re-hire a laid-off employee (December 2009).

And now, as many of these same clients find themselves with an interest in bringing on a summer intern or two, paid or unpaid, they are faced with even more "dos and don'ts" from the state and Federal government!

What's a struggling small business to do?

1. Consider whether you are actually looking for a summer intern or are really just in need of some part-time help. This decision is the foundation on which you will determine whether your company has the time and resources to host, supervise, mentor and educate an intern, whether paid or unpaid.



2. If you realize you are really looking for part-time help, you simply need to define the duties, be sure the hourly wage is at least minimum wage [currently $8.00 in Massachusetts], and either call a temp agency or start a standard search.



3. If, however, you decide that an educational opportunity does exist in your company and it can be structured as an internship - i.e., there is an educational component which provides the intern with generalized training [not training specific only to your business operations] and supervision which offers some mentoring opportunity for the student - check out local educational institutions in your area for their internship program requirements.
   
   For instance, the Office of Career Services at my alma mater, the University of Massachusetts Boston, has a myriad of opportunities for students and employers to interact.
   
   The reality of the expenses of student life, however, usually mean that students need paid internships and cannot rely solely on the college credit they may receive for a two-month summer stint. Smart employers will do their due diligence … ask the questions … and assess whether a paid or unpaid student internship is right [and legal] for their company.



4. If the unpaid internship in partnership with an educational institution works for your business, the experience can be rewarding for both student and employer. Think long and hard in advance, though, and structure the internship as a learning experience, not a free dogsbody for the summer.
   
   If you aren't vigilant in providing education, supervision and mentoring, that promised educational experience may turn into a paid internship after all.

Still thinking about an unpaid summer intern? Review the U.S. Department of Labor's 6-point criteria from Fact Sheet #71 on their website:

1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;



2. The internship experience is for the benefit of the intern;



3. The intern does not displace regular employees, but works under close supervision of existing staff;



4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;



5. The intern is not necessarily entitled to a job at the conclusion of the internship; and



6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

Then call a college or call an employment agency. Whatever you decide, have a productive and profitable summer!

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Article Tags: federal government, government bureaucracy, small business owner, summer intern



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