INTERNSHIP DOS AND DON’TS

JAMES HAYES

SAGE BUSINESS & EDUCATION

YOUTH EMPLOYMENT PROGRAM

WHY INTERNSHIPS?•TEENAGE UNEMPLOYMENT RATE

• 35%

•UNEMPLOYED OR UNDEREMPLOYED COLLEGE STUDENTS

• 54%

•COLLEGE AND CAREER TRAINING MOVEMENT

•REGION’S ECONOMIC STRENGTH = WORK-READY

INTERNING AT GOOGLE

QUICK TRUE AND FALSE

ALL INTERNS IN CALIFORNIA MUST BE PAID AT LEAST MINIMUM WAGE•FALSE

INTERNS SHOULD BE ENROLLED INTO SCHOOL, COLLEGE, ETC. •TRUE

NON-PAID INTERNS

•PAYING INTERNS IS THE BEST WAY

•IF YOU DO NOT, THEN YOU MUST ABIDE BY THE FOLLOWING RULES

•DEPARTMENT OF LABOR

•STATE OF CALIFORNIA

DEPT. OF LABOR STANDARDSRULE #1 –

“SIMILAR TO TRAINING” THAT WOULD BE GIVEN IN AN “EDUCATIONAL ENVIRONMENT”.• TRAINER VS. SUPERVISOR• LEARNING PROJECTS VS. BASIC DUTIES• INTERN GOALS VS. COMPANY GOALS• STUDENT VS. FREE EMPLOYEE

DEPT. OF LABOR STANDARDSRULE #2 –

TRAINING MUST BE “FOR THE BENEFIT OF THE INTERN”.• ASK YOURSELF “HOW WILL THIS TRAINING BENEFIT THE

INTERN?”• START WITH A “GIVING BACK TO SOCIETY MINDSET”

DEPT. OF LABOR STANDARDSRULE #3 - THE INTERN MUST NOT

“DISPLACE REGULAR EMPLOYEES,” BUT MUST INSTEAD WORK “UNDER CLOSE SUPERVISION OF EXISTING STAFF”• DO NOT HIRE AN INTERN, INSTEAD OF HIRING

AN EMPLOYEE!• ASSIGN A SUPERVISOR

DEPT. OF LABOR STANDARDSRULE #4 –

THE EMPLOYER MUST DERIVE “NO IMMEDIATE ADVANTAGE FROM THE ACTIVITIES OF THE INTERN; AND ON OCCASION ITS OPERATIONS MAY ACTUALLY BE IMPEDED”• REMEMBER, THEY ARE NOT STAFF!

DEPT. OF LABOR STANDARDSRULE #5 –

THE INTERN IS “NOT NECESSARILY ENTITLED TO A JOB AT THE CONCLUSION OF THE INTERNSHIP”• STATE HOW YOU TYPICALLY DO NOT HIRE

INTERNS. HOWEVER, HIRING AN INTERN IS LEGAL.

DEPT. OF LABOR STANDARDSRULE #6 –

THERE IS A CLEAR UNDERSTANDING THAT THE INTERN IS “NOT ENTITLED TO WAGES FOR THE TIME SPENT IN THE INTERNSHIP.”• OTHERWISE, IT’S A JOB

QUICK TRUE AND FALSE

CALIFORNIA RULES AND FEDERAL RULES ON INTERNSHIPS ARE THE SAME•TRUE

CALIFORNIA GUIDELINES (NOT LAW)

•ANY INTERNSHIP SHOULD BE PART OF AN “EDUCATIONAL CURRICULUM”

•THE INTERNS SHOULD NOT RECEIVE “EMPLOYEE BENEFITS”

CALIFORNIA GUIDELINES (NOT LAW)

•THE TRAINING RECEIVED BY INTERNS SHOULD BE GENERAL TO THE INDUSTRY, NOT TO JUST YOUR COMPANY.

CALIFORNIA GUIDELINES (NOT LAW)

•THE SCREENING PROCESS FOR INTERNS SHOULD NOT BE THE SAME AS FOR REGULAR EMPLOYMENT, BUT RATHER MUST BE BASED ON “CRITERIA RELEVANT FOR ADMISSION INTO AN INDEPENDENT EDUCATIONAL PROGRAM”

QUICK TRUE AND FALSE

EXTERNSHIPS DIFFER FROM INTERNSHIPS AS THEY REQUIRE LESS SUPERVISION

•FALSE

QUICK TRUE AND FALSEABOUT 50% OF INTERNS RECEIVE A JOB OFFER AT THE END OF THEIR INTERNSHIP•FALSE

•48% OF ALL INTERNS (PAID AND UNPAID) RECEIVE AN OFFER.

•WITH 60% OF PAID INTERNS RECEIVING ONE.

CALIFORNIA GUIDELINES (NOT LAW)

•POSTINGS FOR INTERNSHIPS SHOULD CLEARLY DESCRIBE THE POSITIONS AS EDUCATIONAL OR TRAINING-BASED RATHER THAN AS EMPLOYMENT.

THROW THE OLD WAY OF DOING THINGS OUT THE WINDOW

•NO MORE PICKING UP DRY CLEANING!

•2011 LAWSUITS

•FOX SEARCHLIGHT – BLACK SWAN

• FOX RECEIVED THE UNPAID BENEFITS FROM THEIR WORK.

•MANY OTHERS FOLLOWED

INTERNSHIP LAWSUITS

•P DIDDY’S BAD BOY ENTERTAINMENT

•WARNER MUSIC & ATLANTIC

•FOX SEARCHLIGHT PICTURES

•NBC UNIVERSAL

•FOX ENTERTAINMENT

•SONY

•MADISON SQUARE GARDEN

Entertainment

INTERNSHIP LAWSUITS

•FASHION

•DONNA KAREN INTERNATIONAL

•BRIAN LICHTENBERG

•ELITE MODELING

•PUBLISHING

•W MAGAZINE

•NEW YORKER MAGAZINE

•GAWKER MEDIA

FALLOUT• COMPANIES ARE DROPPING INTERNSHIP PROGRAMS

• INTERNS THAT SUE, DO HAVE A HARDER TIME ENTERING THAT FIELD

• STRONGER INTERNSHIP EXPERIENCE

• MUCH NEEDED FOR ANYONE ENTERING THE JOB MARKET

• RESUME BUILDER

• 85% OF COMPANIES PREFER APPLICANTS WHO ATTENDED AN INTERNSHIP

• THE BEST WAY FOR STUDENTS TO APPLY WHAT THEY LEARN IN THE CLASSROOM

COMMON EMPLOYER MISTAKES

•HE’S A VOLUNTEER!

•VOLUNTEER VS. NON-PAID INTERN

•VOLUNTEERS ARE ACCEPTABLE, BUT ONLY FOR NON-PROFITS

COMMON EMPLOYER MISTAKES

•PAYING INTERNS BILLING INTERNS LATER

QUICK TRUE AND FALSE

PAID INTERNS CAN RECEIVE A STIPEND, INSTEAD OF AN HOURLY WAGE, TO FULFILL DEPT. OF LABOR RULES•DEPENDS…IF THE STIPEND EQUALS MINIMUM WAGE

OR HIGHER, THEN YES.

QUICK TRUE AND FALSEHAVING AN INTERN IS AN EXCELLENT WAY TO CUT EMPLOYEE COSTS•FALSE

TO ENSURE INTERNS LEARN, EMPLOYERS SHOULD GIVE INTERNS REPETITIOUS DUTIES•FALSE

QUICK TRUE AND FALSE

TYPICAL INTERN HOURLY WAGE AT THE BACHELOR’S DEGREE LEVEL IS $16.•TRUE

STRATEGIES•THINK: INTERNSHIP IS NOT A SOURCE OF CHEAP LABOR.

•THINK: AN OPPORTUNITY TO GIVE BACK TO YOUR COMMUNITY.

•DO: GIVE YOUR INTERN AS MUCH TIME AS POSSIBLE LEARNING FROM EXPERIENCED STAFF.

•WHAT YOU GET: A NEW PERSPECTIVE ON YOUR BUSINESS FROM A YOUNG PERSON’S POINT OF VIEW.

STRATEGIES

•SET SMART GOALS FOR THE INTERN

•BE FLEXIBLE WITH INTERN SCHEDULING

STRATEGIES

•DO NOT DRAW INTERNS INTO OFFICE DRAMA

•IF MORE THAN ONE INTERN, DO NOT PLAY FAVORITES

STRATEGIES

•UNPAID INTERNSHIPS HAVE TO BE EDUCATIONAL AND SHOULD BE A STUDENT.

•INTERNS MUST GET HANDS-ON EXPERIENCE WITH EQUIPMENT AND PROCESSES USED IN THE INDUSTRY.

•PAYING THE INTERN AT LEAST MINIMUM WAGE

•$8 AN HOUR VS. $300 AN HOUR FOR A LAWYER.

STRATEGIES•DON’T MAKE INTERNS YOUR ONLY

SOURCE FOR LABOR.

•YOU CAN HIRE FORMER INTERNS, BUT IT CANNOT BE YOUR ONLY MEANS OF HIRING, AND YOU CAN’T REPLACE EMPLOYEES WITH INTERNS.

ANY QUESTIONS?

JAMES HAYES

SAGE BUSINESS & EDUCATION

YOUTH EMPLOYMENT PROGRAM