The internship is a program designed to assist graduates to gain job experience. It guides and helps individuals participating in this program to acquire skills that are essential in the workplace. Interns volunteer to work for an organization on roles meant for regular employees. Bank managers should consider interns hired to help them perform employee’s duties and give them remuneration the minimal wage and overtime compensation for worked hours.
Test for Unpaid Interns
Various circumstances permit the bank manager not to pay interns. For example, when the trainee is assigned work by an employee to assist them to finalize on it and the worker is involved in the process. The word “suffer and permit” may not be interpreted to mean an individual whose work only aids his or her interest. It applies to interns who have acquired skills in the banking sector to enable them to work as employees.

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The following helps to determine if a trainee gets paid;
Although internship encompasses realistic management of a bank’s facility, it is the same as training in an educational setting. Offering internship opportunities in a bank is equal to preparing graduates to the banking industry, but not recruiting them as permanent employees for the bank.
Internship experience benefits the interns. Offering internship in banks is intended to provide financial and accounting management experience and skills to trainees in preparation for the job market.
An intern is not entitled to employment at the end of placement training, but they are permitted to train and acquire the required skills to perform duties in different organizations.
A trainee does not substitute a typical worker but operates under the management of the present personnel.
The bank manager and the intern are aware that the trainee is not eligible for salary for the duration spent during the training.
The bank offering the internship does not receive immediate benefits from the intern’s contribution . Thus, its operations can be hindered.

Pointers Determining How to Develop a Placement Program
Results from the internship training process center in intern training consistent with a pre-defined national curriculum. A person should be regarded as a staff, not an intern if the employee wants to recruit a person to perform a specified job temporarily in the bank. All correlated employment rules apply because the intern works as an employee. If you have unpaid interns momentarily working in a corporation to execute a particular role or task, the “unpaid internship” function exposes the bank to long-term liabilities, creating problems with workers’ compensations, wage and hour rules, employment tax withholding, and welfare benefit. Therefore, a bank manager can avoid liability issues by separating employee’s roles from those of interns. In case an intern is assigned tasks intended for the employees, it is the responsibility of the company’s to compensate the intern because the bank is benefiting, meaning it is employing a part-time worker to perform a specified role in the bank.

How Unpaid Internships Programs Functions
Banking managers ensure that interns receive training like students in professional colleges to gain experience in the actual running of the firm’s facilities. Internship programs should follow a particular curriculum to ensure that proper training is undertaken such that the trainees acquire the required skills to perform their work effectively. Before an intern is admitted for an internship to a bank, term and conditions should be stipulated before commencement. With these circumstances in place, well-defined roles are provided to ensure compensation issues are handled. The bank can only pay an intern when certain duties performed by an employee is delegated to him. In this scenario, the bank manager often feels that an intern is now well-experienced and is suitable to execute technical duties without supervision. The bank manager has a choice to select only the best and experienced trainees to carry out complex responsibilities without close supervision. As a result, there is value for money to the bank and also the intern performing the various tasks.

Monitoring and Displacement Issues
Interns ought to be paid overtime compensation and minimum wage for the hours worked in a workweek if the employer involves interns to replace regular employees, or to boost existing labor force for specified a period. The manager should recruit extra staffs or ask existing employees to work extra hours. If the trainees perform the task on behalf of the employees, they should be viewed as workers and have a right to compensation under the FLSA

On the contrary, if the company is offering job evaluation opportunities that enable an intern to learn specific functions under close monitoring by regular staffs, then the activity is viewed as a legal education experience. Conversely, if the intern is supervised in a typical level as an ordinary worker, they are termed as an employment relationship, but not training.

In general, the internship must be for a fixed period set up before the commencement of the course. Bank managers can avoid paying interns if they separate roles assigned to interns’ roles from the responsibilities given to the average employees and exclude them from overtime errands. As employers, it is prudent to ensure that interns receive sufficient training and payment should be included in duties categorized as those of permanent or contracted workers. Moreover, unpaid internship ought to be used by the company as a trial course for people looking for employment opportunities at the end of the internship program.

  • Bottner, R. (2011). Total internship management: The employer’s guide to building the ultimate internship program. Acton, MA: Intern Bridge.
  • Lochmiller, C. R. (2014). Walking the Line Between Employee and Intern: Conflict in an Administrative Internship. Journal of Cases in Educational Leadership, 17(1), 72-83. Doi: 10.1177/1555458913518536
  • Shull, C. K. (2013). Employee Engagement: Does it make a Difference in Business Performance? Psych EXTRA Dataset. Doi: 10.1037/e518572013-289