What are the rules for paying interns?
The rules for paying interns in Pennsylvania are dictated by wage and hour law. In Pennsylvania, if an intern is engaged in a “bona fide” training program, then they are not entitled to the minimum wage and overtime pay. The Pennsylvania Department of Labor and Industry (PADOLI) outlines the criteria that must all be satisfied in order for an intern to qualify as a “bona fide” training program. The criteria includes: training must be similar to what would be given in a vocational school, benefits the intern more than the employer, and the intern does not replace an existing paid employee, among other criteria. If an intern does not meet the criteria, then they must be paid the minimum wage and overtime pay according to the Pennsylvania Minimum Wage Act of 1974. Additionally, there may be legal requirements regarding the payment of interns depending on the employer’s tax classification. Employers who are deemed an “employer” by the Pennsylvania Department of Revenue must pay all interns who are over 18 years of age at least the minimum wage. If an employer is not considered an employer, they may still be subject to the Fair Labor Standards Act (FLSA) or similar regulations. Under the FLSA, interns must be paid the minimum wage and overtime pay depending on the individual’s hours worked. Ultimately, employers in Pennsylvania must understand the criteria for a “bona fide” program and the applicable legal requirements for paying interns before engaging in an internship program.
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