Hiring interns can be a game-changer for companies looking to nurture fresh talent and boost their workforce. However, it’s not as simple as bringing young professionals on board and hoping for the best.
At Applicantz, we understand the complexities of intern recruitment, including the legal considerations and best practices that can make or break an internship program. This guide will walk you through the essential steps of hiring interns, from legal requirements to effective program structuring and internal hiring strategies.
Legal Requirements for Hiring Interns
Navigating the FLSA Guidelines
The Fair Labor Standards Act (FLSA) sets the foundation for intern employment in the U.S. Companies must understand these regulations to avoid legal pitfalls.
Paid vs. Unpaid Internships: Understanding the Distinction
The Department of Labor uses a “primary beneficiary test” to determine if an internship can be unpaid. This test allows courts to examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary” of the arrangement.
If the intern is the primary beneficiary, the position can be unpaid. However, if the company benefits more, the intern must receive at least minimum wage and overtime pay.

State-Specific Regulations: A Complex Landscape
Federal law provides a baseline, but many states impose additional rules. For example:
- California requires unpaid interns to receive college credit
- New York mandates internships must be part of an educational curriculum
Companies must check their state’s specific laws to ensure full compliance. The Society for Human Resource Management (SHRM) offers a comprehensive state-by-state guide to internship regulations.
Practical Steps for Compliance
- Document everything: Create a detailed internship agreement outlining educational benefits, duration, and expectations.
- Provide substantial training: Ensure interns gain valuable skills related to their field of study (not just busy work).
- Set a clear timeframe: Internships should have a defined duration, typically aligning with an academic semester or summer break.
- Avoid employment promises: Don’t guarantee future employment, as this can blur the line between intern and employee.
- Consider paid internships: When in doubt, paying interns at least minimum wage is the safest route to avoid legal issues.
The Cost of Non-Compliance
The risks of misclassifying interns are significant. In a notable case, Fox Searchlight Pictures faced a class-action lawsuit alleging failure to pay their interns. This case underscores the importance of proper classification and compliance.
As we move forward, it’s essential to understand how to structure an effective internship program that benefits both the intern and the organization while staying within legal boundaries. It’s also important to stay informed about background check laws and their impact on HR to ensure compliance and avoid legal pitfalls in your hiring processes.
How to Build a Powerful Internship Program
Creating an effective internship program requires more than just bringing young talent into your organization. It demands a structured approach that benefits both the intern and your company. A well-designed program can lead to successful hires and long-term organizational growth.
Set Clear Learning Objectives
The foundation of any successful internship program is a set of well-defined learning objectives. These objectives should align with the intern’s academic goals and your organization’s needs. For example, a marketing intern might have objectives like “Develop and execute a social media campaign” or “Analyze customer data to identify market trends.”
The National Association of Colleges and Employers (NACE) 2025 Internship & Co-op Report explores key aspects of employers’ internship and co-op programs and offers hiring projections for 2024-25 programs. This underscores the importance of aligning internship experiences with real-world skills.
Design Meaningful Projects
Interns want real work experience, not just coffee runs. Assign projects that contribute to your company’s goals while allowing interns to apply their academic knowledge. For instance, a software development intern could work on a feature for your product, or a finance intern could assist in preparing financial reports.
Implement a Robust Mentorship Program
Mentorship is a critical component of any successful internship program. Pair each intern with a seasoned employee who can provide guidance, answer questions, and offer career advice. Regular check-ins between mentors and interns can help track progress and address any challenges.
Mentoring programs improve employee retention, engagement, skill development, and job satisfaction, fostering long-term business success.
Provide Continuous Feedback
Don’t wait until the end of the internship to provide feedback. Regular performance discussions help interns understand their strengths and areas for improvement. Consider implementing a system of weekly check-ins and monthly formal reviews.
Create Networking Opportunities
Expose interns to different parts of your organization through networking events, lunch-and-learns, or job shadowing opportunities. This not only broadens their understanding of your company but also helps them build professional relationships.
According to LinkedIn statistics, 122 million people received an interview through LinkedIn with 35.5 million having been hired by a person they connected with on the platform.

As you structure your internship program, consider how you’ll measure its success. Track metrics like intern satisfaction rates, the percentage of interns who receive or accept full-time offers, and the performance of former interns who become full-time employees. These insights will help you refine and improve your program over time, ensuring it continues to attract top talent and contribute to your organization’s growth.
How to Recruit and Onboard Top Interns
Craft Compelling Internship Descriptions
Discover engaging, proven job description examples for entry, mid, and senior-level roles-plus best practices to attract top talent faster. Your internship job descriptions should highlight the unique value of your program. Focus on specific projects interns will tackle, skills they’ll acquire, and potential career paths within your organization. For example, instead of “Marketing Intern Needed,” try “Launch Your Marketing Career: Create Viral Social Media Campaigns.”
Include clear qualifications, but avoid overdoing it. Strike a balance to encourage a diverse applicant pool.
Leverage University Partnerships
Strong relationships with universities can significantly boost your intern recruitment efforts. The assignment of department liaisons, work groups, and a focus on student employability all contribute to developing deep partnerships.
Contact career services offices at local universities to promote your internships. Offer to give guest lectures or host workshops related to your industry. This increases your visibility and allows you to interact with potential interns before the formal application process.
Maximize Career Fair Impact
Career fairs remain a valuable recruitment tool, but standing out requires strategy. Create an eye-catching booth design that reflects your company culture. Train your representatives to engage students effectively – ask about their projects and interests rather than just collecting resumes.
Consider hosting a pre-fair event on campus. A casual meet-and-greet or information session can help you connect with interested students in a less hectic environment.
Design a Comprehensive Onboarding Process
A strong onboarding process sets the tone for the entire internship experience. Handle paperwork during pre-boarding and confirm their first day and standard hours of work, ideally in a face-to-face call, which can help them feel more comfortable.

On day one, pair each intern with a buddy (a recent graduate or former intern) who can show them the ropes. Schedule meetings with key team members and provide a clear outline of projects and expectations.
Implement a digital onboarding system to streamline the process. Tools like Applicantz offer features that automate many onboarding tasks, ensuring nothing falls through the cracks and allowing interns to start productively.
The goal of onboarding isn’t just to cover administrative tasks – it’s to immerse interns in your company culture and set them up for success. A well-structured onboarding process can significantly impact an intern’s productivity and overall experience.
Final Thoughts
Hiring interns requires careful consideration of legal requirements, program structure, and recruitment strategies. Companies must navigate FLSA guidelines, understand paid versus unpaid internships, and stay informed about state-specific regulations. Effective internship programs set clear objectives, design meaningful projects, and implement mentorship systems.
Recruiting top interns demands compelling job descriptions, university partnerships, and impactful career fair presence. A comprehensive onboarding process immerses interns in company culture and prepares them for productive contributions. Well-structured programs comply with legal requirements and contribute to talent development and organizational growth.
Internship programs enhance internal hiring strategies by nurturing talent from within. This approach creates a pool of candidates familiar with company culture and operations. Applicantz’s all-in-one hiring software streamlines intern recruitment and onboarding processes, helping organizations attract and hire top talent efficiently (without making claims about the company).