Unpaid internships can be a valuable way for individuals to gain experience and build their professional networks, but they also raise important questions about employment law and compliance. One key issue is whether unpaid interns are required to complete an I-9 form, which is used to verify an individual's eligibility to work in the United States. In this article, we will explore the requirements for unpaid internships and I-9 forms, and provide guidance for employers and interns alike.
Understanding I-9 Forms
An I-9 form is a document used by the U.S. Citizenship and Immigration Services (USCIS) to verify an individual’s identity and eligibility to work in the United States. The form must be completed by all employees, including citizens and non-citizens, and is typically required for all new hires. The I-9 form requires employees to provide documentation, such as a passport or driver’s license, to prove their identity and work authorization.
Who is Required to Complete an I-9 Form?
According to the USCIS, all employees who are hired to work in the United States are required to complete an I-9 form, including:
- U.S. citizens
- Non-citizen nationals
- Lawful permanent residents
- Refugees and asylees
- Temporary workers with work authorization
However, the USCIS also provides some exceptions to this rule, including individuals who are not considered “employees” for I-9 purposes. This can include independent contractors, volunteers, and unpaid interns, but only if they are not considered employees under the Fair Labor Standards Act (FLSA).
Unpaid Internships and the FLSA
The FLSA is a federal law that sets minimum wage and overtime requirements for employees. To determine whether an unpaid intern is considered an employee under the FLSA, the U.S. Department of Labor (DOL) uses a six-factor test:
- The internship is similar to training given in an educational environment
- The internship is for the benefit of the intern
- The intern does not displace regular employees
- The employer derives no immediate advantage from the intern’s work
- The intern is not entitled to a job at the end of the internship
- The employer and intern understand that the intern is not entitled to wages
If an unpaid intern meets these six factors, they are not considered an employee under the FLSA and are not required to complete an I-9 form. However, if the intern does not meet these factors, they may be considered an employee and would be required to complete an I-9 form.
Best Practices for Employers
To avoid potential liability and ensure compliance with the FLSA and I-9 requirements, employers should follow these best practices:
- Clearly define the terms of the internship, including the duration, responsibilities, and expectations
- Ensure that the internship is for the benefit of the intern and provides educational or training value
- Do not use interns to displace regular employees or to derive immediate advantage from their work
- Make it clear that the intern is not entitled to wages or a job at the end of the internship
- Consider completing an I-9 form for unpaid interns as a precautionary measure, even if they are not considered employees under the FLSA
Consequences of Non-Compliance
Failure to comply with the FLSA and I-9 requirements can result in significant fines and penalties for employers. For example:
| Violation | Penalty |
|---|---|
| Failure to complete an I-9 form | 230 to 2,292 per violation |
| Failure to verify employment eligibility | 376 to 19,393 per violation |
| Unpaid wages or overtime | 1,000 to 10,000 per violation |
Additionally, employers who are found to have misclassified employees as unpaid interns may be liable for back wages, benefits, and other penalties.
Are unpaid interns required to complete an I-9 form?
+Unpaid interns who are not considered employees under the FLSA are not required to complete an I-9 form. However, employers should consider completing an I-9 form as a precautionary measure to ensure compliance with the FLSA and I-9 requirements.
What are the consequences of non-compliance with the FLSA and I-9 requirements?
+Failure to comply with the FLSA and I-9 requirements can result in significant fines and penalties for employers, including $230 to $2,292 per violation for failure to complete an I-9 form, and $1,000 to $10,000 per violation for unpaid wages or overtime.
In conclusion, unpaid internships can be a valuable way for individuals to gain experience and build their professional networks, but they also raise important questions about employment law and compliance. Employers should follow best practices to ensure compliance with the FLSA and I-9 requirements, including clearly defining the terms of the internship, ensuring that the internship is for the benefit of the intern, and considering completing an I-9 form as a precautionary measure. By understanding the requirements and consequences of non-compliance, employers can minimize their risk and ensure a successful and compliant internship program.
