Employment and Labor Law

Unpaid Internships May Subject Employers to Investigations, Fines and Potential Litigation

By: Mara B. Levin and Carol M. Goodman
Herrick Feinstein LLP (New York, New York, USA)

With summer on the horizon, employers will soon face a deluge of résumés from college students, recent graduates, and recently laid-off workers hoping to land a summer internship. 

In this tough economic climate, employers may be tempted to offer unpaid internships as a way to receive free labor while keeping costs low.  However, employers should be aware that there are federal and state guidelines regarding unpaid internships. Employers who violate these guidelines and fail to properly compensate interns may face harsh penalties that include owing back wages, overtime pay, attorneys' fees, interest, and liquidated damages.  Furthermore, employers may face civil lawsuits brought by former unpaid interns. Click here to read entire article.

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