Hiring Unpaid Interns? Here are the New York Laws You Need to Follow.

As colleges start back up for the year, some companies look to bring on student interns to help augment their workforce at minimal cost, while providing a valuable service to a student looking to get real-world work experience. But as an employer, it’s important to recognize the state regulations not only surrounding paid vs. unpaid interns, but also the legal protections interns receive. While most interns must be compensated at least minimum wage plus any applicable overtime in accordance with the Fair Labor Standards Act (FLSA), the US Department of Labor (DOL) has laid out specific circumstances under which an organization may bring on an unpaid intern. If you don’t wish to pay your interns, make sure you follow the Department of Labor’s test to ensure compliance. Once you’ve hired unpaid interns, New York laws that apply include certain state nondiscrimination protections.

Civil Rights Protections

Covered employers are generally prohibited from taking the following actions based on an intern’s age, race, creed, color, national origin, sexual orientation, military status, sex, disability, predisposing genetic characteristics, marital status, or domestic violence victim status:

• Refusing to hire or employ or barring or discharging an intern or discriminating against such intern in the terms, conditions, or privileges of employment as an intern;
• Discriminating against an intern in receiving, classifying, disposing, or otherwise acting upon applications for internships; or
• Printing or circulating (or causing to be printed or circulated) any statement, advertisement or publication, or using any form of application for employment as an intern or making any inquiry in connection with prospective employment, which directly or indirectly expresses any limitation, specification or discrimination (or any intent to make any such limitation, specification or discrimination).

Pregnancy and Harassment

Covered employers are also generally prohibited from, among other things, compelling an intern who is pregnant to take a leave of absence (unless the intern is prevented by such pregnancy from performing the activities involved in the job or occupation in a reasonable manner). The law also extends certain protections against harassment.

Another important factor to consider is liability for intern injuries that occur in your workplace. An unpaid intern would generally not qualify for automatic coverage under the company’s workers’ compensation policy, as this benefit is based on earned wages. Therefore, it is important to speak to your workers’ compensation carrier to discern how to obtain additional coverage for unpaid interns.

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Source: “NY: New Law Grants Nondiscrimination Protections to Unpaid Interns” by Zywave