By Theresa Witham
Intern season (aka summer) is over. Did you hire interns at your credit union this past summer? I use the word "hire" because, in recent years, there's been a focus on paid vs. unpaid interns. If you’re not careful, you could find yourself in big trouble. It seems some unpaid interns are suing! Granted, the stories told in this Time Moneyland article are extreme. I can’t imagine a credit union treating interns like those interviewed.
But the easiest easy way to stay out of trouble is to pay your interns. If they are doing work that someone else normally does, pay them minimum wage and don’t worry about running afoul of the Fair Labor Standards Act, which has regulated unpaid internships since 1938.
If paying isn’t an option, check your intern program against the following rules. Now, these rules apply to for-profit companies and, as not-for-profit institutions, perhaps credit unions can get away with more. But it’s probably a good idea to follow these guidelines:
- 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;
- 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 that provides 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 conclusion of the internship; and
- the employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
CUES had an editorial intern working this summer! Lauren Etter is studying communication at the University of Wisconsin-Madison, Madison, Wis. During her time at CUES, she contributed many wonderful articles for our online and print publications. Check out some of her articles:
Economy Drives Changes for Checking
Credit Unions Raise Public Awareness
Serving the Underserved via Kiosks
Gorillas and Guerilla Marketing
Also read this CUES Skybox blog post that she wrote.
Theresa Witham is a CUES editor.
