Learning the Ropes

With summer in full swing, many Michigan businesses already have interns hard at work, gaining experience, lending a hand, and learning the ropes. Whether your interns just started or are a few weeks in, now’s a great time to take a step back and make sure your program aligns with state and federal labor laws.

One of the most common issues we see involves whether an intern should be paid. Under the Fair Labor Standards Act (FLSA), interns at for-profit businesses are typically considered employees—and must be paid at least minimum wage—unless certain conditions are met. The Department of Labor uses a “primary beneficiary test” to determine if the intern or the employer is benefiting more from the arrangement. If the intern is primarily there to learn and isn’t replacing paid employees, the position might qualify as unpaid. Still, many employers choose to pay interns to avoid compliance concerns and support a fair workplace.

In Michigan, interns who count as employees must be paid at least the current minimum wage, even if they’re part-time or temporary. And don’t forget to double-check your workers’ compensation coverage. Some interns may need to be included, depending on the nature of their work.

It’s also worth remembering that interns, paid or unpaid, are still protected by laws that prohibit discrimination and harassment. In Michigan, that includes the Elliott-Larsen Civil Rights Act. Interns should receive the same respect and workplace protections as any other team member.

Even if your internship program is already underway, it’s not too late to put the right structure in place. A simple written agreement outlining the scope, expectations, and duration of the internship can go a long way in avoiding misunderstandings.

Internship programs offer real value for students and businesses alike, but they also come with legal responsibilities. If you have interns in your workplace this summer and want to make sure everything is set up correctly, the team at Wright Beamer is here to help. Contact our skilled attorneys at 248.477.6300.