24

July, 2015

Three Major Wage Law Changes Require Reassessing Pay Practices

The legal landscape with regard to who must be paid for their work, and what and how they must be paid is collectively shifting as a result of recent developments from the U.S. Department of Labor (DOL) and the federal courts.  A recent decision by the Second Circuit U.S. Court of Appeals has cleared the way for employers to hire more students as unpaid interns by rejecting a rigid six-factor DOL test that had precluded virtually all unpaid internships.  At the same time, though, the DOL has tightened other standards to push many more workers into the classification of employees (not freelancers or independent contractors) and the DOL projects its new proposed regulations on overtime eligibility will annually entitle millions of more employees to overtime pay. Read More

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10

November, 2014

LIFE’S LESSONS* Spring 2014, Real Issues…Reconstituted Facts

STRUCTURING AN UNPAID INTERNSHIP

The hiring season is commencing for college and high school students, who are eager to build their resumes with practical work experience. But must students be paid for these work experiences, and at what rate? Does it matter if their school provides them with academic credit? Let’s consider Midsize Company, where three managers wish to retain students as summer interns.

Harold wants to offer five summer internships, with a stipend of $1000 each. The interns would help alleviate the department’s data entry backlog, under the guidance of the full-time staff. They would attend guest lectures from employees in other departments and would have a one-day shadowing opportunity with a member of Harold’s management team.

Bari wants to offer one student from her alma mater an unpaid summer internship. This intern would shadow Bari and members of her team on a rotational basis. Bari has also scheduled her peers in other functions to speak with the intern about their respective roles. The student would receive college credit, provided he/she completes a research project, and Bari has written a hypothetical fact pattern that she will have the student independently research over the course of the summer.
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