Sterling Employment Law’s Guidance For Hiring Interns And Summer Staff

Internships can offer valuable experience for both students and employers. But without clear legal guidance, internship programs can expose Michigan businesses to wage claims, discrimination complaints or tax issues.

At Sterling Employment Law, we help companies in Metro Detroit and across Michigan understand the legal responsibilities that come with hiring interns and summer workers. Our employment law attorneys advise on intern classification, onboarding practices and risk management strategies that keep internship and other short-term programs compliant.

What Is The Difference Between An Intern And An Employee Under The FLSA?

The Fair Labor Standards Act (FLSA) has a strict test for determining whether an intern must be paid. Many employers mistakenly post unpaid internships without meeting those requirements, often targeting college students in ways that risk wage and hour violations.

Employers must consider:

• Whether the intern receives educational benefits
• Whether the intern displaces a paid employee
• Who primarily benefits from the relationship

If the intern qualifies as an employee, they must be paid at least minimum wage. Our attorneys also advise on posting internships in ways that avoid discrimination and clarify compensation, responsibilities and harassment protections. Message us to talk to a skilled employment lawyer today.

What Are The Tax And Discrimination Risks Associated With Internship Programs?

Employers must avoid statements in internship postings that suggest a preference for young applicants. Even if aimed at students, these postings can trigger age discrimination claims. On the tax side, interns who are treated as employees are subject to payroll tax withholding. However, some interns may fall below taxable income thresholds. We help employers determine:

• When FICA and FUTA apply
• Whether the intern’s compensation qualifies for exemption
• How to avoid misclassifying an intern as an independent contractor

Getting this right helps reduce IRS audits and discrimination claims.

Can My Company Offer An Unpaid Internship Program Without Legal Risk?

Unpaid internships are legal but only in narrow circumstances. Employers must structure these programs to comply with the FLSA “primary beneficiary” test, which looks at factors such as educational value and lack of employer benefit.

We help employers create structured internship programs that include:

• Clear educational objectives
• Formal offer letters and confidentiality agreements
• Intern handbooks and supervisor guidelines
• Anti-harassment policies that cover interns
• Agreements on intellectual property and nondisclosure

An employment law attorney can review your program to ensure it fits legal standards and does not expose your business to liability.

Can I Terminate An Intern Early, And What Are The Legal Implications Of Doing So?

Yes, but there are risks. Even unpaid interns may have rights if the early termination appears discriminatory or retaliatory. Employers should:

• Document performance concerns or policy violations
• Follow any terms in the internship agreement
• Avoid firing decisions that could be tied to protected categories or complaints

We help employers address intern conduct, restructure assignments and navigate early exits without triggering legal claims.

Talk With An Employment Law Attorney About Internships And Summer Hiring Practices

Sterling Employment Law advises employers in Metro Detroit and throughout Michigan on internship programs and seasonal hires. Our attorneys ensure your hiring practices comply with labor laws and reduce legal exposure. Call us at 248-633-8916 or fill out our online form to connect with an experienced employment law attorney.