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Showing 5 posts in Employment.

The Return of the Unpaid Internship

For the past eight years, the U.S. Department of Labor (the "DOL") followed a strict six-part test to determine whether a for-profit employer could use interns without compensating them for the services they provided. Read More ›

Categories: Department of Labor, Employee Handbook, Employment, Fashion, Labor Relations

Considering Offering an Unpaid Internship? Think Twice

Are you aware of the six-part test to determine whether or not  a worker can be classified as an unpaid intern? Most interns working at for-profit organizations must be paid at least the minimum wage, plus applicable overtime. To learn more about the risks of unpaid internships, read this technology law blog post.

Categories: Employment

The Training Wage – Affordable help for you and resume worthy experience for the under 20 employee

experienceLike so many start-ups, Michigan fashion designers have, or will, experience that moment when they really, really need a hand but hyperventilate at the thought of paying an employee. You thought an unpaid intern was the answer, until you read Internships – A Teachable Moment. How do you respond when that eager student that still needs a summer internship sends you another email and tempts you with an offer to work without pay? A training wage may be the answer.  Read More ›

Categories: Employment

House Bill 4198, what is it good for? Nothing, absolutely nothing.

If you employ anyone or hope to employ someone, be aware of a very bad idea. House Bill 4198, introduced by State Rep. Peter Lucido would, if it became law, effectively ban non-compete agreements between employers and employees in the State of Michigan. Particularly for fashion designers, who lack statutory protection for the overall design of their garments and accessories, a covenant not to compete is a very important provision in the designers’ agreements with their employees.

According to Crain’s Detroit Business (March 23, 2015, p. 25), House Bill 4198 was a reaction to a publicized debate over the use of covenants not to compete by Jimmy John’s Franchise LLC to prohibit their sandwich makers from working for a competitive sandwich shop. I have to wonder whether anyone involved in such a debate, or involved in authoring House Bill 4198, has a working knowledge of current Michigan statute on the topic and the role of our courts in enforcing covenants not to compete. Read More ›

Categories: Contracts, Employment, Intellectual Property, Manufacturing

Internships – A Teachable Moment

Internships are a beautiful thing. They can provide a student with invaluable experience. If you are working with an intern or you were interested in offering an internship, please read on.

If you need a hand with your work as you are launching your design business, and you thought an intern would be a great way to get free labor, think again. Calling an employee an intern, as a way to cut costs, is a really bad idea and will expose your business to the wrath of the U.S. Department of Labor (“DOL”). Generally speaking, an internship in a “for-profit” private sector business will be viewed as employment unless the relationship meets the following six factors: (1) the internship is similar to training which would be given in an educational environment, even though the intern is involved in the “actual operations” of the employer; (2) the internship experience is for the benefit of the intern; (3) the intern does not displace regular employees, but works under close supervision of existing staff; (4) the employer that provides the training derives no immediate advantage from the activities of the intern and on occasion its operations may actually be impeded; (5) the intern is not necessarily entitled to a job at the conclusion of the internship; and (6) the employer and the intern understand that the intern is not entitled to wages for the time spent in the internship. Read More ›

Categories: Employment, Fashion