It’s almost semester break. Do you have some unpaid interns about to arrive after Christmas? While unpaid internships can provide advantages for both employers and students, they also risk your company running afoul of state and federal laws.

Note that the word “unpaid” is problematic. If interns are found to be doing the work of employees for “free,” employers can be found liable for significant amounts of unpaid wages, employment taxes, and penalties. 

To avoid these unintended consequences—and make the experience better for the interns, be sure your unpaid internship program follows these guidelines:

• Is similar to training that would be provided in an educational environment;
• Predominantly benefits the interns;
• Provides interns with skills they can use in multiple employment settings, rather than only in your company's operation;
• Ensures interns do not perform routine work of the business on a regular and recurring basis;
• Does not result in displacing regular employees;
• Does not merely augment the existing workforce during the specific time periods;
• Puts interns under the close supervision of existing staff;
• Provides no immediate advantage to the employer from the interns activities;
• Impedes the employer's operations on occasion;
• Runs for a fixed length of time,established before the internships begin;
• Does not entitle interns to employment after their internships conclude; and
• Makes clear to interns that they are not entitled to wages for their time at the company during the internship.