Verify that we are meeting federal and California standards for Internships

[ExperimentsInHonesty]

Overview

We need to comply with Federal and State standards for internships.

Action Items

• [ ] Identify federal websites and list below in resources
• [ ] Identify state websites and list below in resources
• [ ] Identify relevant documentation at federal sites
• [ ] Identify relevant documentation at state sites
• [ ] Send to legal resource for review

Resources/Instructions

California Department of Industrial Relations

U.S. Department of Labour FAQ Sheet

[ExperimentsInHonesty]

When searching on California Department of Industrial Relations I found the following

Opinion/Intern Program Exemption: LA Weekly Date: 1998-11-12

1. The training, even though it includes actual operation of the employer's facilities, is similar to that which would be given in a vocational school.
2. The training is for the benefit of the trainees or students.
3. The trainees or students do not displace regular employees, but work under their close observation.
4. The employer derives no immediate advantage from the activities of the trainees or students, and on occasion the employer's operations may actually be impeded.
5. The trainees or students are not necessarily entitled to a job at the conclusion of the training period.
6. The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.
7. Any clinical training is part of an educational curriculum.
8. The trainees or students do not receive employee benefits.
9. The training is general, so as to qualify the trainees or students for work in any similar business, rather than designed specifically for a job with the employer offering the program. In other words, on completion of the program, the trainees or students must not be fully trained to work specifically for only the employer offering the program.
10. The screening process for the program is not the same as for employment, and does not appear to be for that purpose, but involves only criteria relevant for admission to an independent educational program.
11. Advertisements for the program are couched clearly in terms of education or training, rather than employment, although the employer may indicate that qualified graduates will be considered for employment.

Letter to Joseph W. Ambash Date: 2010-11-07 The federal Department of Labor (DOL) has articulated six criteria, derived from the Supreme Court's Portland Terminal case, to be applied to determine whether a "trainee" is exempt from FLSA's minimum wage coverage. 2 (DOL OL 5/I 7/04 [criteria derived from Portland Terminal].) The six criteria used by DOL are as follows: (I) The training, even though it includes actual operation of the employer's facilities, is similar to that which would be given in a vocational school; (2) The training is for the benefit ofthe trainees or students; (3) The trainees or students do not displace regular employees, but work under their close observation; (4) The employer derives no immediate advantage from the activities of trainees or students, and on occasion the employer's operations may be actually impeded; (5) The trainees or students are not necessarily entitled to a job at the conclusion of the training period; and 2010.04.07 2 The listed criteria is also contained in DOL's Wage & Hour Manual (BNA) 91 :416 (1975) and in DOLIWH Field Operations Handbook, See. lObi I (10/20/93). (6) The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.

[Rabia2219]

When searching https://www.dol.gov/agencies/whd/fact-sheets/71-flsa-internships: I found these to be important: The Test for Unpaid Interns and Students Courts have used the “primary beneficiary test” to determine whether an intern or student is, in fact, an employee under the FLSA.2 In short, this test allows courts to examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship. Courts have identified the following seven factors as part of the test:

The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee—and vice versa. The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions. The extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit. The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic calendar. The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning. The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship.

Another important note: Footnotes

1 - The FLSA exempts certain people who volunteer to perform services for a state or local government agency or who volunteer for humanitarian purposes for non-profit food banks. WHD also recognizes an exception for individuals who volunteer their time, freely and without anticipation of compensation, for religious, charitable, civic, or humanitarian purposes to non-profit organizations. Unpaid internships for public sector and non-profit charitable organizations, where the intern volunteers without expectation of compensation, are generally permissible.

[Rabia2219]

Removing the following from the PM agenda as it has been carried forward multiple times. Please review when this issue is picked up again.

Bonnie's Note: Clean up this issue https://github.com/hackforla/internship/issues/111 re If the internship is not paid, please ensure full adherence to the US Department of Labor and California Department of Industrial Relations’ law for unpaid internships. Rabia and I reviewed the standards and feel we are on safe ground.

[cbutcher318]

Provide Update

1. Progress: I just added this to my plate
2. Blockers: Will need contact for legal to review. Would be helpful to review status/history of the issue with the product team.
3. Availability: I will have a few hours to work on this next week, unless other duties come up.
4. ETA: 1-2 weeks.

[cbutcher318]

Unassigned myself to make room to complete higher priority project needs.