A letter you don’t want to get!
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A letter you don’t want to get! Somebody owes your intern $8.25 X 500 = $4,125.00 PowerPoint PPT Presentation


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A letter you don’t want to get! Somebody owes your intern $8.25 X 500 = $4,125.00. A Black Swan-Ugly Duckling. Background: College “internships” have long be an institution in higher education, but recent developments could change that.

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A letter you don’t want to get! Somebody owes your intern $8.25 X 500 = $4,125.00

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A letter you don t want to get somebody owes your intern 8 25 x 500 4 125 00

A letter you don’t want to get!

Somebody owes your intern

$8.25 X 500 = $4,125.00


A black swan ugly duckling

A Black Swan-Ugly Duckling

Background:

College “internships” have long be an institution in higher education, but recent developments could change that.

Two students have filed suite alleging they were treated and acted as employees and should have been paid for their work.


Guidance

Guidance

U.S. DEPARTMENT OF LABOR, WAGE AND HOUR

FACT SHEET #71—

Internship Programs Under The Fair Labor Standards

Directed to “for profit” private sector-but could be applied to “not for profit”


Not for profit examption

NOT FOR PROFIT EXAMPTION

DOL guidance specifically stated that the six-part test was applicable to for-profit private sector employers, noting that the FLSA makes a special exception for individuals who volunteer to perform services for religious, charitable, civic or humanitarian purposes to non-profit organizations or for government agencies. According to the DOL, unpaid internships in the public sector and for non-profit charitable organizations generally are permissible.


Dol guidance

DOL Guidance

In order to qualify as an unpaid volunteer for such an organization, an individual generally must perform services freely, without pressure or coercion, and such services must be performed without promise, expectation or receipt of compensation.


Dol guidance1

DOL Guidance

A limited range of payments are permitted:

  • reimbursement for expenses, such as uniforms, transportation and meals

  • reasonable benefits, such as health and pension;

  • nominal fees, meaning payments that are not tied to productivity or intended as a substitute for compensation.

    29U.S.C. § 203(e)(4)(A).


Dol guidance2

DOL Guidance

  • Regarding the last point, the DOL generally uses a “20 percent rule,”

  • under which a fee paid to a volunteer will be considered nominal if it does not exceed 20 percent of the wages that would be paid to a regular employee performing the same tasks.


Dol 6 criteria

DOL-6 criteria

MUST MEET ALL SIX

  • 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


Dol 6 criter must meet all

DOL-6 CRITER-must meet all

  • 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

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


Policy

POLICY

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