Posted on: April 16, 2025                                                                                                  

With the warmer temperatures approaching, you may be thinking about hiring interns, minors or seasonal workers. If so, keep in mind laws such as those governing minimum wage, overtime, nondiscrimination, and child labor. Here are nine compliance considerations when hiring interns, minors, and/or seasonal workers.

#1: Paying interns.

Unless very narrow tests are satisfied, for-profit employers must pay interns. The United States Department of Labor (DOL) uses a primary-beneficiary test to determine whether an intern must be paid under the Fair Labor Standards Act (FLSA). Some states have additional criteria for determining whether interns are entitled to pay. For example, the state of New York uses several components of the federal test but adds five criteria of its own.

Evaluate each relationship on a case-by-case basis, and when in doubt, pay interns at least the minimum wage and overtime. Check your state law to ensure compliance.

#2: Minimum wage and overtime.

Employers must generally pay all non-exempt employees — including minors, paid interns and seasonal workers — at least the minimum wage for all hours worked and overtime when applicable. However, the FLSA allows employers to pay employees under the age of 20 an "opportunity wage" of $4.25 per hour during the first consecutive 90 calendar days of employment. Note: Some states and local jurisdictions specifically prohibit employers from paying anything less than the minimum wage, so be sure to check applicable laws and consult legal counsel as needed.

#3: Minimum age requirements.

The FLSA prohibits anyone under the age of 18 from working in hazardous occupations. A list of these occupations can be found at 29 CFR §570.50 through 29 CFR §570.68. Additionally, individuals under the age of 16 are generally excluded from, among other things, manufacturing, mining, machine-tending, transportation, construction, and public utility work. Minors under the age of 17 are prohibited from operating a motor vehicle; however, workers 17 or older may do so when certain criteria are met. Some jurisdictions have additional restrictions, so check your state and local law to ensure compliance.

#4: Work permits.

Many states require minors to have a work permit or working papers before they can begin employment. In states with this requirement, work permits are typically obtained through the minor's school district or the state’s equivalent to the Department of Labor. Keep work permits on file for each minor hired.

#5: Hours of work restrictions.

The FLSA and many state laws restrict the hours a minor can work. Under the FLSA, when school is in session, 14- and 15-year-olds can work three hours on a school day or 18 hours in a school week. When school is not in session, they may work up to 40 hours in a week and up to 8 hours in a day under federal law. From June 1 through Labor Day, 14- and 15-year-olds can work no later than 9 p.m. under federal law. At other points in the year, they can work no later than 7 p.m. under federal law.

While there are no federal limits on the hours worked by 16- and 17-year-old workers, some states impose such restrictions.

#6: New hire paperwork.

Employers must complete certain new hire paperwork for all new hires, including minors, paid interns, and seasonal workers. This includes the following.

Form I-9

A Form I-9 must be completed for each new hire to verify the individual’s identity and that they are authorized to work in the United States. To complete Section 2 of the I-9, employees must present documents for this verification. The Form I-9 includes a List of Acceptable Documents (List A, List B and List C). An employee must present one document from List A, or one document from List B and one document from List C. 

• List A documents: establish both identity and employment authorization
• List B documents: establish identity only
• List C documents: establish employment authorization only

Typically, for the Form I-9, employers must examine an employee’s documentation in the employee’s physical presence.

However, if an employer is unable to physically meet with the worker to review Form I-9 documents, federal law allows employers to use an authorized representative to fulfill this function on the employer’s behalf. Under this method, the authorized representative will view the documents in the remote employee’s presence.

Employers may follow an alternative procedure to the in-person physical document examination method, provided they meet certain requirements.

Form W-4

All new hires must complete a Form W-4 to determine the amount of federal income tax to withhold from their wages. Several states also require a tax withholding form. Employers should ensure they are using the latest version of the form, which may change each year. If the employee has questions or asks for advice on how to complete a W-4, instruct them to speak with a tax advisor.

Notice of Coverage Options

Under the Affordable Care Act (ACA), employers must provide a Notice of Coverage Options to all new hires within 14 days of their start date. This requirement applies even if the employer doesn't offer health insurance and/or the employee is not eligible for health insurance.

Wage and hour

Under federal law, employers that use the tip credit must first notify tipped employees of:

• The minimum cash wage that will be paid;
• The tip credit amount, which cannot exceed the value of the tips actually received by the employee;
• That all tips received by the tipped employee must be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips.

Note:  Some states and local jurisdictions have stricter rules related to tip credits or prohibit them altogether. Check your state and local law for compliance requirements.

State and local notices

Many states and local jurisdictions also require that employers provide specific notices to employees at the time of hire. These required notices may cover state disability insurance, state-run retirement programs, leave entitlements, harassment and discrimination, workers' compensation, unemployment, and other employment-related benefits and protections. Many states require employers to provide, in writing, the employer’s business name, address, and telephone number; the employee’s rate of pay and regular payday; and certain other information. Provide new hire notices in accordance with your state and local requirements.

New hire reporting

Federal law requires that employers submit certain information to their state regarding each new hire within 20 days of the employee's start date, but several states have shorter timeframes. New hire reporting is included in many RUN Powered by ADP® packages. If you have to fulfill these responsibilities on your own, you have several options, such as submitting the new hire's W-4 or an equivalent form. Check your state's new hire reporting program for details.

#7: Meal and rest breaks.

Many states have specific meal and rest break laws for employees. Even if your state doesn’t require you to provide breaks to other employees, you may be required to provide them to minors. Check your state law for details.

#8: Discrimination and harassment protections.

Nondiscrimination laws prohibit employers from discriminating or harassing applicants and employees. These laws also protect paid interns, minors, and seasonal workers. Some jurisdictions have extended these protections to unpaid interns as well. Enforce your nondiscrimination and anti-harassment policies consistently. And promptly investigate all complaints.

#9: Time-off benefits.

Depending on the jurisdiction, minors, paid interns, and seasonal workers may be entitled to paid sick leave and/or other types of paid or unpaid leave. For example, New York requires employers with five or more employees to provide paid sick leave. All private-sector employees in the New York are covered, regardless of industry, occupation, part-time/seasonal status, and overtime exempt status. Employers with fewer than five employees and a net income of $1 million or less must provide sick leave to all employees, but it may be unpaid.

Be sure to check federal, state and local leave laws for details.

Conclusion

If you are hiring interns, minors or seasonal workers this summer, plan ahead and comply with applicable federal, state and local laws.