Employment Practices Liability: Legal Implications of Hiring Interns

Posted by | February 25, 2014

Employment Practices Liability: Legal Implications of Hiring InternsEmployment Practices Liability: Legal Implications of Hiring Interns
For many employers, the only difference between an intern and a temporary worker is that the intern is still attending school. However, there are many legalities involving interns that employers, and temporary staffing agencies, need to be aware of. Improper treatment of an intern can lead to the same employment practices liability claims that staffing agencies could face from temporary workers.

The U.S. Department of Labor states a few of the legal requirements a company faces when employing an intern:

  • The internship experience must be for the benefit of the intern
  • The employer provides the training and derives no immediate advantage from the activities of the intern. Occasionally, business operations may actually be delayed.
  • The employer and the intern must understand and have it documented that the intern is not entitled to wages for the time in the internship, unless some sort of compensation was agreed upon previously.
  • The intern is not displacing a regular employee
  • The intern is not necessarily entitle to a job at the conclusion of the internship, and is made aware of this fact.

Another important factor for your staffing agency clients to be aware of, is that interns are not only eligible for employment practices liability claims, but even unpaid interns could be eligible for staffing agency workers compensation claims. Some state laws specifically list certain types of interns that are eligible for workers compensation, so your staffing agency clients should be sure to check their local state government office.

At World Wide Specialty Programs, we offer Staffing Agency Employment Practices Liability Insurance designed specifically to protect your clients’ staffing firms against claims brought on by an applicant or employee for allegations, including but not limited to discrimination, sexual harassment, and wrongful termination. Please contact us today at (877) 256-0468 to learn more about the policies we offer for your staffing agency clients.