🧑‍🎓 Hiring Interns: Do You Have to Pay Them? A Legal Guide for Employers

🧑‍🎓 Hiring Interns: Do You Have to Pay Them? A Legal Guide for Employers Hiring interns can be a win-win—offering students real-world experience while giving your business fresh energy and ideas. But before you bring on an intern, it’s critical to understand the federal guidelines and state laws that determine whether an internship must be paid or can legally be unpaid. Here's what every business should know to stay compliant—and protect both your interns and your organization. ⚖️ Federal Guidelines: The “Primary Beneficiary Test” The U.S. Department of Labor (DOL) uses a “Primary Beneficiary Test” to determine whether an intern is considered an employee under the Fair Labor Standards Act (FLSA). If the intern is legally an employee, they must be paid at least minimum wage. This test includes seven non-exhaustive factors : Expectation of no compensation – Both parties understand the internship is unpaid. Training is educational in nature – Mirrors what the intern wo...