Hiring summer interns can be a great way for businesses to bring in fresh talent, support short term projects, and give students real world experience. But internships also come with important legal and HR considerations that employers should understand before bringing someone on board.

Below are key things employers should know when hiring summer interns.

Are interns required to be paid?

In many cases, yes.

One of the most important factors in determining whether an intern must be paid is whether the internship primarily benefits the student or the employer. This is often evaluated using the Department of Labor’s “primary beneficiary test.”

If the intern is providing work that benefits the business, they may need to be classified and paid as an employee.

When there is any uncertainty, the safest approach is to pay the intern.

How should businesses structure a summer internship?

A well defined structure is essential for a successful internship program.

Employers should clearly outline:

• Internship duties and responsibilities
• Expected schedule and hours
• Compensation, if applicable
• Reporting structure and supervision
• Learning objectives or training components

Clear expectations help prevent misunderstandings and ensure the internship is meaningful for both the business and the intern.

Why is supervision important for interns?

Interns, especially those new to the workforce, often need more guidance than regular employees.

Businesses should identify:

• Who will supervise the intern
• How often check ins will occur
• What training will be provided
• How performance feedback will be given

Strong supervision helps ensure compliance, improves the intern experience, and reduces the risk of miscommunication or unclear expectations.

Can unpaid internships be legal?

Unpaid internships can exist in limited circumstances, but they must meet strict criteria.

In general, if an internship is primarily educational and provides structured learning opportunities similar to a classroom experience, it may be more likely to qualify as unpaid.

However, employers should be cautious. If the business is the primary beneficiary of the intern’s work, the internship likely needs to be paid.

When in doubt, paying the intern is the safer and more compliant option.

Should businesses get documentation from schools?

Yes, when applicable.

If an internship is tied to school credit or an academic program, employers should request documentation from the educational institution outlining:

• The learning requirements
• Whether credit will be awarded
• Any academic supervision requirements

This helps clarify expectations and supports compliance if questions arise later.

Do labor laws apply to interns?

Yes.

Interns may be subject to:

• Minimum wage laws
• Overtime rules
• Child labor laws (if under 18)
• Workplace safety requirements

Businesses should not assume that interns are exempt from standard employment laws.

What should employers do before hiring interns?

Before bringing on a summer intern, employers should:

• Determine whether the internship will be paid or unpaid
• Define the role clearly
• Assign a supervisor
• Review insurance coverage
• Confirm compliance with child labor laws if applicable
• Ensure proper documentation is in place

Taking these steps early helps create a smoother experience for both the intern and the business.

The Bottom Line

Hiring interns can be a great opportunity, but it is important to treat internships as structured employment arrangements, not informal help or casual seasonal support.

Clear expectations, proper classification, and strong supervision are key to building a successful internship program.

Need help creating internship policies, employee handbooks, or HR compliance guidelines? Consult HR Services helps businesses build practical HR systems that support both compliance and real world operations.