ARTICLES, BLOGS & VIDEOS

The latest news, trends and information to help you with your recruiting efforts.

Posted May 27, 2016 by

How new overtime laws will affect interns and recent grads

How the new overtime laws will affect recent college graduates

Photo by StockUnlimited.com

How will the new overtime laws affect interns and recent grads? A variety of experts weigh in on this hot topic.

Changes to overtime laws

The Department of Labor expects the new overtime laws to affect 4.2 million workers – many of whom are likely new college grads out on their first “real” job.  As of December 1, 2016, the days of working 50+ hours a week and earning $35,000 should be gone, says Kate Bischoff, a human resources professional and employment/labor law attorney with the Minneapolis office of Zelle LLP, an international litigation and dispute resolution law firm. Bischoff is co-leading a June 2, 2016, webinar titled Preparing for Changes to FLSA Overtime Regulations, discussing this topic and more.

Salary versus hourly

There’s one thing college graduates should keep in mind, says Bischoff, and that is that salary has nothing to do with status.

“Being paid a salary doesn’t mean that an employee is more valuable to his or her employer than an hourly employee,” says Bischoff. “It is simply a different way of paying people for their work.”

Those who are nonexempt – those eligible for overtime – may earn time and a half when they work long hours and may even earn more than their salaried brethren, points out Bischoff. Those who are exempt and earn more than $913 a week will not be compensated for their long hours in the office in the form of hourly payments. In fact, when some employees shift from salaried to hourly, many times, they earn more as an hourly employee.

The other thing about being paid on an hourly basis is that employers need to know how much you work, says Bischoff. With apps on smartphones and smart watches, employees can now track their time easier than ever before. “If you track your steps, you can track your hours,” says Bischoff. “The fact that you have to punch in or clock out only means you need to capture your time to get paid the value of your work. That’s all.”

Ask questions to clarify status

So what should college grads do and consider before accepting a job, or if they have questions about their current and future employment status at their existing job? Ask questions such as these, says Bischoff:

  • What will their overtime status be?
  • Will this position be eligible for overtime?
  • Will I be paid a salary?

“For many college grads, work-life balance is important, so ask if you will be able to make it to your volunteer activity every Thursday evening,” says Bischoff. “While asking if you will ‘have to’ work overtime may be a signal to an employer that you might not be a dedicated employee, you can ask about particular events or activities important to you. You may glean from the answer the amount of hours you will put in.”

What do the new overtime laws mean for interns?

Currently, the vast majority of interns earn less than the $23,660 DOL threshold and therefore are classified as non-exempt and qualify for overtime. When the new rules take effect on December 1, 2016, the threshold will almost double to $50,440. The number of interns who earn between $23,660 and $50,440 is miniscule and, therefore, the law will directly impact virtually no interns, says Steven Rothberg, founder of College Recruiter. That said, there could be a substantial impact on new grad hiring as virtually all new grads earn more than $23,660, the average is about $46,000, and a substantial minority earn more than the $50,440.

“At College Recruiter, we believe that the law will have a substantial impact on the number of hours worked by management trainees and other such workers who have traditionally been paid as exempt, salaried employees with no ability to earn overtime pay yet who routinely work far more than the standard 40-hour work week,” says Rothberg. “Employers will likely instruct these employees not to work more than 40-hours per week, which will effectively increase the compensation paid to and reduce the return on investment generated from these employees. Yet with a tightening labor market, more Baby Boomers retiring, and fewer Millennials graduating, it is unlikely that there will be any noticeable change in the number of recent grads finding employment within their chosen career paths.”

Manufacturing director: New OT laws could hurt interns and recent grads

John Johnston is Director of Manufacturing at States Manufacturing, a Minneapolis-based custom electrical and precision fabricated metal company with 49 employees.

He fears the new overtime laws will hurt interns and new hires, namely those graduating from college or technical schools.

“I would expect the starting wage to decrease to compensate for the change in overtime rules,” says Johnston. “Also, I would tend to expect the opportunities to reduce as well as the patience of employers. If we are going to pay more, we are going to raise our expectations and be less patient with someone because of the wage they are earning. When we have had lower wage earners at the start of their career, we are able to be more patient in part because the issues are not as magnified with a lesser wage. Once that increases, we have no choice but to be tougher that much quicker.”

Johnston said his company may avoid hiring interns in the future due to the increased costs and instead balance it with multiple part-time employees. The company currently does not have any interns, partly because they were sorting out the details of the new labor and overtime laws.

“I see this as a trend to save on escalating costs since benefits would not be required with part-time employees,” says Johnston.

A ripple effect for college grads

Elliot D. Lasson, Ph.D., SPHR, SHRM-SCP, is an adjunct professor at the University of Maryland, Baltimore County in Rockville, Maryland and a Human Capital Consultant with Lasson Talent Solutions. Lasson regularly presents to students on behalf of college career centers.

According to Lasson, the new overtime regulations will have ripple affects all around.

“Students who are in college or right out of college want to gain meaningful experience,” he said. “They are not paying all that money to be flipping burgers or driving for Uber after graduation. The conventional wisdom is that internships are valuable. And they objectively are. However, many employers misappropriate that label to justify in order to get free labor from students who feel desperate for that experience. In many cases, internships play out in a way where the students are gaining only minimal exposure to the workplace and field, while at the same time are not getting paid.”

The Department of Labor previously identified six conditions that must be met in order to permit unpaid internship scenarios. “Many employers play fast and loose with these under the pretense that the work environment itself is more important than it objectively is,” says Lasson. And now, this extends to graduate school as well. The grad students are still “students” and therefore unlike their undergraduate peers who are not in graduate school can still “qualify” to be unpaid interns while in graduate school.  So, there is additional abuse of the system here as well, says Lasson.

“With the popularity of unpaid internships, many employers are inundated with requests and may just take advantage of students without having a handle on the DOL guidelines,” says Lasson.

For more career tips, check out our blog and follow us on LinkedIn, Twitter, Facebook, and don’t forget to subscribe to our YouTube channel.

Posted May 13, 2014 by

Internship Finder, How Much Longer Will Unpaid College Internships be Available?

If you’re an internship finder, understand that a paid or unpaid internship can give you valuable experience.  However, will unpaid internships continue?  Learn more in the following post.

The unpaid college internship, which reigned supreme over the past decade as the way to secure a job after graduation, may soon be disappearing. According to a recent Wall Street Journal article, both employers and colleges are starting to rethink their internship policies. In light of several high-profile lawsuits brought by former interns (including

More here:

Continue Reading

Posted April 29, 2014 by

8 Tips for Employers Who Use Unpaid Interns

Amy Conway

Amy Conway

By Amy Conway, Associate, Stinson Leonard Street

With summer finally around the corner, employers who utilize interns should review their internship programs to ensure compliance with applicable wage and hour laws. The vast majority of interns in the private sector qualify as employees under the Fair Labor Standards Act (FLSA) and need to be paid accordingly.

The Department of Labor’s Six-Factor Test

The U.S. Department of Labor (DOL) uses a six-factor test for determining whether an intern is exempt from the FLSA or, conversely, is an employee subject to the FLSA’s protections. While the DOL notes that the intern/employee question “depends upon all of the facts and circumstances” of the program, it also takes the position that all six criteria must be met in order for an intern to fall outside the parameters of the FLSA: (more…)

Posted April 18, 2014 by

Are Getting Entry Level Jobs Dependent on GPA?

I think most students would agree that their GPAs might be a factor when searching for entry level jobs.  Just how important are grades to recruiters?  Get one opinion in the following post.

Does your GPA matter to recruiters? I would stress that it’s not GPA that’s important, but the work that goes into it. That is, students should not strive for a GPA as the number in and of itself, but strive to do good work and learn something. It’s the work that results in students increasing knowledge, building skills

Originally from:

Continue Reading

Posted April 16, 2014 by

Internship Finder, Some Reasons Why It Pays to Do Unpaid Internships

As an internship finder, you may wonder what is the point of doing an unpaid internship.  In the following post, learn why it pays to do an unpaid internship.

Featured: Featured Another student emailed me after hearing me talk at her school. She wanted to know why I chose to do unpaid internships. Here are my thoughts: 1. I was after the experience. In college, I wanted extra money for expenses, food, and fun so I got a part-time job. In college, I

Link to original:

Continue Reading

Posted March 19, 2014 by

9 Tips College Recruiters May Not Tell You When Starting School

High school seniors should know nine tips that college recruiters may not tell them when starting college.  Learn what they are in the following post.

You only get the amazing experience of college once in your life. Sometimes this experience is the best in your life, and at other times, even the strongest people want to give up and cry. You’ll encounter a big learning curve as you transition from high school to college. For probably the first time in your life, you’re living

Jump to original:

Continue Reading

Posted September 17, 2013 by

Internship Finder, 4 Myths You Might Hear About

As an intern, you may hear a variety of things about internships.  However, that doesn’t mean everything you hear is true.  In the following post, learn four myths you may come across as an internship finder.

Featured: Featured I was listening to an interview I did with the Washington Post TV about internships. Check it out HERE. While I was listening, I came up with these 4 myths about internships. Enjoy! 1. The goal of the internship is to land a job at THAT company. The goal of the internship is the experience. The goal

Continue at source:

Continue Reading

Posted September 17, 2013 by

The Benefits of Unpaid Internships & How They Can Turn Into a Full-Time paid Job

A happy intern who is smiling

A happy intern who is smiling. Photo courtesy of Shutterstock.

The primary goal of any internship program is to give students a short-term, first-hand work experience while simultaneously offering employers a chance to evaluate a prospect for a future position.

That two-fold purpose is getting lost, or at least diluted, in the increasingly antagonistic debate over whether an internship is useful, if it’s not preceded by the adjective “paid.”

Everyone wants to get paid for work, but when you’re ready to apply for a full-time position, most employers hire based on job experience. An internship provides that. (more…)

Posted August 12, 2013 by

38% of Internships With Corporations May Violate Fair Labor Standards Act

Marilyn Mackes of the National Association of Colleges and Employers

Marilyn Mackes of NACE

Nearly two-thirds of graduating seniors from the Class of 2013 took part in an internship or a cooperative education assignment during their years pursuing a bachelor’s degree, according to results of a survey of college students by the National Association of Colleges and Employers (NACE). NACE’s 2013 Student Survey found that 63.2 percent of graduating seniors from the Class of 2013 reported having taken part in an internship, co-op, or both. “This represents the highest overall participation rate since we began tracking this with the Class of 2007,” says Marilyn Mackes, NACE executive director. That’s the good news and, by way of context, only 57 percent of the Class of 2008 reported having  taken part in an internship, co-op, or both.

More than half of internships by Class of 2013 graduating seniors were performed at for-profit, private-sector organizations (56.3 percent). The remaining internships were undertaken at nonprofits (28.1 percent) and state, local, or federal government agencies (15.7 percent). (more…)

Posted July 31, 2013 by

Are unpaid internships coming to an end?

Female business intern holding a clipboard

Female business intern holding a clipboard. Photo courtesy of Shutterstock.

Consider these three interrelated pieces of prevailing wisdom:

1.    It’s a competitive job market.
2.    Gaining experience to put on your resume can help you get a job.
3.    Unpaid internships may put a strain on your finances, but will help your career in the long run.

Each year, approximately half a million career-builders work as unpaid interns with the hope of future career growth, while businesses reap the free benefits of motivated workers eager to impress.

But don’t resign yourself to becoming one of those thousands quite yet: A recent court decision has opened the question of whether unpaid internships will become a relic of the past. (more…)