2. WHY INTERNSHIPS?
• TEENAGE UNEMPLOYMENT RATE
• 35%
• UNEMPLOYED OR UNDEREMPLOYED
COLLEGE STUDENTS
• 54%
• COLLEGE AND CAREER TRAINING MOVEMENT
• REGION’S ECONOMIC STRENGTH = WORKREADY

3. INTERNING
AT GOOGLE

4. 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

5. 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

6. DEPT. OF LABOR STANDARDS
RULE #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

7. DEPT. OF LABOR STANDARDS
RULE #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”

8. DEPT. OF LABOR STANDARDS
RULE #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

9. DEPT. OF LABOR STANDARDS
RULE #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!

10. DEPT. OF LABOR STANDARDS
RULE #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.

11. DEPT. OF LABOR STANDARDS
RULE #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

12. QUICK TRUE AND FALSE
CALIFORNIA RULES AND
FEDERAL RULES ON
INTERNSHIPS ARE THE
SAME
•TRUE

13. CALIFORNIA GUIDELINES (NOT
LAW)
•ANY INTERNSHIP SHOULD BE
PART OF AN “EDUCATIONAL
CURRICULUM”
•THE INTERNS SHOULD NOT
RECEIVE “EMPLOYEE BENEFITS”

14. CALIFORNIA GUIDELINES (NOT
LAW)
•THE TRAINING RECEIVED BY INTERNS SHOULD BE
GENERAL TO THE INDUSTRY, NOT TO JUST YOUR
COMPANY.

15. 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”

16. QUICK TRUE AND FALSE
EXTERNSHIPS DIFFER
FROM INTERNSHIPS AS
THEY REQUIRE LESS
SUPERVISION
•FALSE

17. QUICK TRUE AND FALSE
ABOUT 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.

18. CALIFORNIA GUIDELINES
(NOT LAW)
•POSTINGS FOR INTERNSHIPS
SHOULD CLEARLY DESCRIBE THE
POSITIONS AS EDUCATIONAL OR
TRAINING-BASED RATHER THAN
AS EMPLOYMENT.

19. 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

20. INTERNSHIP LAWSUITS
Entertainment
• P DIDDY’S BAD BOY
ENTERTAINMENT
• WARNER MUSIC &
ATLANTIC
• FOX SEARCHLIGHT
PICTURES
• NBC UNIVERSAL
• FOX ENTERTAINMENT
• SONY
• MADISON SQUARE
GARDEN

21. INTERNSHIP LAWSUITS
•FASHION
•DONNA KAREN
INTERNATIONAL
•BRIAN LICHTENBERG
•ELITE MODELING
•PUBLISHING
•W MAGAZINE
•NEW YORKER
MAGAZINE
•GAWKER MEDIA

22. 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

23. COMMON EMPLOYER MISTAKES
•HE’S A VOLUNTEER!
•VOLUNTEER VS. NON-PAID INTERN
•VOLUNTEERS ARE ACCEPTABLE,
BUT ONLY FOR NON-PROFITS

24. COMMON EMPLOYER MISTAKES
•PAYING INTERNS  BILLING
INTERNS LATER

25. 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.

26. QUICK TRUE AND FALSE
HAVING AN INTERN IS AN EXCELLENT
WAY TO CUT EMPLOYEE COSTS
• FALSE
TO ENSURE INTERNS LEARN,
EMPLOYERS SHOULD GIVE INTERNS
REPETITIOUS DUTIES
• FALSE

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

28. 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.

29. STRATEGIES
•SET SMART GOALS FOR
THE INTERN
•BE FLEXIBLE WITH
INTERN SCHEDULING

30. STRATEGIES
•DO NOT DRAW INTERNS
INTO OFFICE DRAMA
•IF MORE THAN ONE
INTERN, DO NOT PLAY
FAVORITES

31. 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.

32. 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.

33. ANY QUESTIONS?
JAMES HAYES
SAGE BUSINESS & EDUCATION
YOUTH EMPLOYMENT PROGRAM