Fact Sheet #71: Internship Programs Under the Fair Labor Standards Act

This fact sheet provides general information to help determine whether interns and students working for “for-profit” employers are entitled to minimum wages and overtime pay under the Fair Labor Standards Act (FLSA).

Guidelines and information are from the US Department of Labor Wage and Hour Division website.

For more information on hiring students with disabilities and graduates, please contact Student Accessibility Resources at 850.474.2387 or visit their website.

CDCE requires that employers:

• Career Fair Code of Conduct: Employers participating in career fairs or other on campus recruiting activities are required to abide by CDCE's Career Fair Code of Conduct. 
• Use assessment tools and tests appropriately in the recruiting and hiring processes- Employment professionals engaged in administering, evaluating, and interpreting assessment tools, tests, and technology used in selection must be trained and qualified to do so. Employment professionals must advise students/alumni in a timely manner of the type and purpose of any test that students/alumni will be required to take as part of the recruitment process.
• Third-party recruiting agencies- If you are a third-party recruiter posting a job for a client, it is necessary to disclose the client name for which you are recruiting in the Job Description Box. All positions posted by third-party recruiters without the client's name will be deleted from the Handshake system. Third-party recruiters are eligible to participate in career events if they are recruiting for their own organization or if they state the organizations they are representing at the time of the fair.
• Follow CDCE event registration guidelines- Registration fees, CDCE's refund policy and other information related to registration fees can be found in Handshake for each career fair hosted by CDCE. 

UWF has adopted the following policies regarding remote and work-from-home internships:

• In order for a remote internship to be posted in Handshake, the business must provide an email address, phone number, and web address. The position must include learning objectives and offer the student professional supervision for the duration of the internship. Additionally, the internship must meet the Fair Labor Standards Act requirements if it is unpaid.
• Internships requiring students to work from an employer’s residence will not be posted in Handshake.

Due to the varying employment, business, and compensation models used by employers, UWF Career Development and Community Engagement (CDCE) will exercise discretion when determining whether to work with employers and promote opportunities through CDCE channels. Opportunities must comply with applicable laws and CDCE policies and practices, including the following criteria for commission-based sales positions and independent contractor opportunities.

1. Commission-only compensation

Commission-based sales positions that do not offer a base salary must be clearly identified as commission-only in Handshake. The compensation structure, including how commissions are earned, must be transparently disclosed to job seekers throughout the application and offer process.

2. Independent contractor (1099) positions

Positions classified by the employer as independent contractor opportunities may be eligible for posting in Handshake and promotion through career fairs and other on-campus recruiting opportunities, subject to CDCE review and approval.

Handshake postings for these positions must include the following disclaimer:

“This position is not a direct-hire W-2 position. Compensation will be reported, as applicable, using the appropriate tax reporting form, which may include Form 1099-NEC. Independent contractors are generally considered self-employed and are responsible for understanding and meeting their applicable federal, state, and local tax obligations, which may include self-employment taxes and income taxes. Independent contractors generally do not receive employee benefits from the client or business engaging their services. For more information, please refer to the IRS or consult a qualified tax professional.”

Employers are responsible for properly classifying workers in accordance with applicable law. Employers seeking additional guidance on the distinction between independent contractors and employees are encouraged to consult the IRS guidance on worker classification or a qualified tax professional. According to IRS guidelines, identifying a position as 1099 does not, by itself, establish that the worker qualifies as an independent contractor.

3. Upfront costs and required purchases

Except for applicable industry licensing or credentialing requirements approved by CDCE, opportunities that require job seekers to pay upfront, nonrefundable fees or make mandatory out-of-pocket purchases to obtain or maintain a position may not be promoted through CDCE channels. This restriction includes required purchases of goods, inventory, sales leads, or similar materials as a condition of employment or participation in the opportunity.

Any exception for licensing or credentialing costs is subject to CDCE review and does not constitute an endorsement of the opportunity.

4. Repayment obligations and compensation advances

Opportunities that require students or alumni to repay training costs or reimburse the employer for training expenses if they leave the position are not eligible for promotion through CDCE channels.

Similarly, opportunities that require repayment of draws against commissions, cash advances on wages or salary, or other compensation advances solely because the individual leaves the position are not eligible for promotion through CDCE channels.

CDCE reserves the right to request additional information, decline or discontinue promotion of an opportunity, or require revisions to a posting when necessary to support transparency, student and alumni interests, and compliance with university policies.