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Does my company need to follow any specific requirements for offering unpaid internships during the summer?

I run a small start up company and I am looking to hire a couple interns for the summer. Can I offer an unpaid internship and if so, is there any specifics I should know? Also, with the unemployment rate rising - where is the best place to find a couple interns without going through tons of applications?

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Maxine Ruby
HR Manager
Posted on June 30, 2009
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I don't know about specific requirements, but most interns are college students and working towards college credit if the internship is unpaid. You have to remember that most interns are using the summer to catch up on summer school classes or trying to make a little extra coin, so 40 hours a week without pay is probably not a good idea. Give them a flexible schedule and make sure you have structure for them in your business. If you want the internship to be successful, you want to give them work and keep them busy for the short time they spend at your company. You want it to be an enjoyable experience, not a boring one. You also have to remember that if the internship goes well...they might end up as a future employee down the road.

Try posting the internships around local college resource centers or seek out your alma mater. I hope this helps!

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Gary Alan Miller
Posted on July 6, 2009
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The National Association of Colleges and Employers (NACE) provide a good document of guidelines, and it includes an overview of the Department of Labor's info on learners/trainees.

See: http://www.luc.edu/experiential/pdfs/NACE_Internship_Tips.pdf

Regarding finding the interns, I agree about going through career centers at universities, since they often can help target and narrow on your behalf (of course, I work at one, so I'm probably biased...)

Best,
Gary

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David Mair
Managing Partner, Soter Healthcare
Posted on July 6, 2009
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Regarding compensation, you're going to have to pay minimum wage or better, even where academic credit may be involved, if the individual is performing the work that would (a) normally be performed by an employee or (b) is considered productive for the business. The only offset I'm aware of that is still in place is where meals and lodging are provided as part of the internship. In that case, you may be permitted to reduce the direct compensation rate by the lodging expense.

The career center suggestion offered by others is a good one, especially since you're looking at temporary summer help. That group can aid in screening potential candidates that may meet your need.

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Terrell Ibasitas
Consultant, Self-employed
Posted on July 6, 2009
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Gary, Thanks for the URL address. I now have a better understanding before taking on my first trainees. Thanks for the responses guys.

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Julie Turner
HR Professional
Posted on July 7, 2009
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Hi Terrell,

We have decided to give our trainees tasks to complete their internships – final projects, presentations, reports, or hands on activities. If they complete their final task we reward them with small gifts like books or things to remember their experience. Rewarding your trainees is important because you want it to be a great experience for them in the end.

Cheers!
Jo

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