GNYADA July 2014 Newsletter

Dealers Open Doors for Interns

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interns around often fosters learning for the rest of their staff, especially service and fixed-operations man- agers, who mentor the interns. GNYADA’s AYES internships have a positive impact on retention rates. Interns often stick with the dealer- ships in which they interned. According to GNYADA’s AYES Coordinator, Stephen Mercaldo, more than half of such interns are still working at the dealerships where they interned. Internships are a cost- effective way to recruit and train the right talent for your shop.

These students will develop both their technical and “soft” skills, learning to work in an environment as valued members of a team. Interns learn how a dealership oper- ates, and since they arrive with some basic skills, they begin to clock labor hours in the service department like other full-time technicians. AYES internships work for dealers and for the interns. While the intern- ships provide a learning environment in a dealership service department, dealers have an opportunity to evalu- ate the next generation of techni- cians. In addition, having talented

This summer, 45 automotive technol- ogy students in our region are intern- ing at GNYADA-member dealer- ships. This opportunity has proven to be a classic win-win situation for the interns and the dealerships. During a 320-hour workplace intern- ship over the summer between the junior and senior year, students work alongside a mentor in a dealership.

Interns or Employees? The use of unpaid interns in businesses is being monitored by government agencies regarding concerns over wage and hour issues. High profile class-action lawsuits resulted in significant amounts of back pay when unpaid interns were found to be “employees” who should have been paid.

According to the NYS Department of Labor, an intern is only exempt from Minimum Wage laws if they meet all 11 of the following criteria:

The training is similar to training provided in an educational program. The training is for the benefit of the intern. The intern does not displace regular employees, and works under close supervision. The intern does not provide an immediate advantage to the employer. The intern is not necessarily entitled to a job at the conclusion of the internship and is free to take jobs elsewhere in the same field. The intern is notified, in writing, that there are no wages and are not considered employees for minimum wage purposes. Any training is performed under the supervision of knowledgeable and experienced trainers. The intern does not receive employee benefits. The training is general; interns would qualify to work in any similar business. The screening process for the internship relies on criteria relevant for admission to an educational program. Advertisements, postings, or solicitations for the program clearly discuss education or training, rather than employment. If your internship program does not satisfy all 11 criteria, you should pay interns at least minimum wage for all hours worked and time and one-half for all hours worked over 40 in a workweek. This is the case even if the intern accepted an “unpaid internship”. n n n n n n n n n n n

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • July 2014

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