Health Insurance for Summer Interns

State:
Multi-State
Control #:
US-0541BG
Format:
Word; 
Rich Text
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Description

Interns can be terrific additions to a nonprofit's capacity building journey, but it's important to clarify whether they are unpaid volunteers or paid employees. Companies should make sure they comply with U.S. Department of Labor requirements so that unpaid interns cannot claim entitlement to wages or make other claims against the employer. Companies should also be aware whether or not these employees are covered under the Affordable Care Act.

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FAQ

A seasonal employee is an employee who is hired into a position for which the customary annual employment is six months or less. Customary means an employee who typically works each calendar year in approximately the same part of the year, such as summer or winter.

Directly hired temporary workers, including seasonal workers, often don't receive any benefits. Some employers may offer certain basic benefits to temporary workers, but other benefits, such as retirement plans and pensions, may only be available to permanent employees.

There are no legal requirements, so health insurance plans on temporary contracts are typically short-term. If you intend to work for a staffing company longer than a year, consider purchasing an individual policy.

A seasonal employee is an employee who is hired into a position for which the customary annual employment is six months or less. The reference to the term customary means the seasonal employees normally work around the same time each calendar year, such as during summer months or the holiday season.

Unless all of the following criteria are met, the intern is legally an employee, who must be paid the minimum wage, earn overtime, and receive all of the other protections guaranteed by state and federal employment laws: Interns cannot displace regular employees.

Seasonal internships give students the chance to work at an establishment and leave once the internship has been completed.

Gain valuable work experience. Explore a career path. Give yourself an edge in the job market. Develop and refine skills. Receive financial compensation. Network with professionals in the field. Gain confidence. Transition into a job.

All of your full-time workers, seasonal or not, would be eligible for health insurance in any month in which they average at least 30 hours per week. (That comes out to 130 hours worked per month.)Under the law, you have a responsibility to provide her with insurance coverage or pay a penalty in June and August.

If you hire summer interns at the same time each year, it is a good sign they are seasonal employees. This is usually done because your company needs work completed during the summer or because of the employees' availability. They are only seasonal employees if they do not work longer than 6 months.

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Health Insurance for Summer Interns