Classifying Interns: Paid vs. Unpaid

The End of “Coffee Runners”

For years, companies used unpaid interns as free labor. The courts have cracked down on this. The test is now the “Primary Beneficiary Test.”

Who Benefits More?

If the company benefits more (because the intern is filing papers, getting coffee, or doing work a paid employee would otherwise do), they must be paid minimum wage.

An unpaid internship is only legal if:

• It is tied to a formal education program (college credit).
• The training is similar to what would be given in an educational environment.
• The intern does not displace regular employees.

Verdict: Just pay them. It removes the legal risk and attracts better talent.