UNPAID INTERN DISPUTE

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February 12, 2018

by an investor from University of Virginia in Tampa, FL, USA

I understand there may be a legal dispute in the search fund community regarding the use of unpaid interns.  Has anyone here worked with a lawyer during the process of "hiring" unpaid interns?  Are there any offer letters (besides the form in Stanford's article "Best Practices for the Search Phase") that best protect from the risk of using unpaid interns?  Any best practices?  Feel free to direct message me if you'd rather chat privately.  Many thanks.

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Reply by a searcher
from The University of Michigan in Santa Clarita, CA, USA
Great question - I have had experience with some universities not allowing to post unpaid internships and others allowing but with the clear guidelines from the state they are located in. Some of the best practices are also listed here with templates of interviewing techniques, offer letters etc. https://www.endurancesearchpartners.com/EnduranceSearchPartners/media/Resources/Search-Fund-Guide-to-Internships-1st-Edition-Updated.pdf
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Reply by a searcher
in Berkeley, CA, USA
This article says that the "Primary Beneficiary" test is already being applied often -- https://www.wagehourblog.com/2018/01/articles/dol-enforcement/u-s-dol-adopts-primary-beneficiary-test-to-determine-whether-unpaid-interns-are-employees/
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