Trees are beginning to bloom, and bees are buzzing in flower fields as spring is officially underway. As summertime approaches and temperatures continue to rise, employers should be prepared for “Spring Things,” such as navigating employee summer vacation schedules, hosting summer outings and retreats, implementing casual Fridays, and even welcoming interns. Below are a few “Spring Things” that manufacturers should consider as interns join the workplace, employees take off for summer vacations, and summer outings and other warm-weather activities get underway.

• Use of Paid Time Off and Vacation

Employer-paid time off (PTO) and vacation policies are essential ways to increase employee morale, productivity, and retention. However, during the summer months, when employees may spend more time at the beach and engaging in recreational activities, employers should ensure that their PTO and vacation policies are applied consistently and that employees comply with all policy requirements to meet business needs. 

Employers should review their PTO policies to ensure clarity related to eligibility, notice, accrual, approval, and use. If employers identify issues, they may need to revise the policy. For example, if employees are taking vacation in 2- or 3-week increments and disrupt business operations, the policy may need to be revised so that employees may only take vacation in 1-week increments. Similarly, if exempt employees are taking half-days and not inputting their PTO use or vacation in the HRIS program, the policy may need to be updated to clarify that any time out of the office must result in the use of PTO or vacation—this issue may require monitoring. On the other hand, if employees are not using their vacation, it may be time for managers to communicate with certain team members to encourage them to use their PTO.

• Casual Fridays, Pizza Mondays, and Summer Outings

With the return of summertime comes employer-hosted events and teambuilding-focused activities, increasing engagement and improving employee morale. While the goal of these activities is to have fun in an inclusive and safe environment, employers should consider ways to minimize the legal risks associated with these summertime workplace activities and initiatives.

Employers may implement “casual days” in the summer to bring some of the summer fun into the workplace and ensure employees stay comfortable as the summer heat gets turned up. However, manufacturers should be mindful of employee safety and consider whether certain types of footwear or other clothing could pose a safety risk (e.g., employees working on a specific machine). Further, human resources may need to remind employees, generally and individually, of the dress code policy, which contains minimum standards of professionalism in the workplace (e.g., prohibiting offensive clothing).

Manufacturers planning to hold summer outings, retreats, and other events should consider several issues before sending out the invitations. One such issue is whether employees are required to participate in a particular activity, in which case any injuries or illness could result in workers’ compensation coverage with regard to the injury/illness. Employers should also consider what events/activities will be inclusive to all employees rather than presenting a barrier to access or entry; whether alcohol will be served and, if so, how it will be managed; and what measures are needed to ensure professionalism during such events/activities.

• Interns in the Workplace

Manufacturers may be welcoming interns into their businesses in the summer. It goes without saying that internship programs can play a key role in a company’s ability to develop and retain talent, generate new ideas and perspectives, and provide valuable mentorship and opportunity to individuals entering the field, resulting in goodwill in the professional community and the enrichment of the workplace. With these benefits come certain legal compliance challenges related to intern compensation and how internship programs are structured. Manufacturers should take the time to carefully review the administration of their internship programs now to ensure compliance throughout the summer and beyond.

One key issue is whether interns are considered “employees” under applicable law and must be paid. The question is, who is the “primary beneficiary” of the relationship – is it the intern or the employer? It can be very difficult for employers to meet the “primary beneficiary” standard. For example, if an intern is enrolled in an academic study program, is receiving academic credit, is not replacing paid employees, and is essentially working a schedule around their academic calendar, it may be possible for the intern to be “unpaid.” 

Specifically, in determining who is the primary beneficiary of the relationship, courts apply a number of factors to determine whether the intern or the employer is the primary beneficiary, including the extent to which:

1. The intern and employer clearly understand there is no expectation of compensation;
2. The internship provides training similar to that which would be given in an educational environment;
3. The internship is tied to the intern’s formal education program by integrated course work or receipt of academic credit;
4. The internship accommodates the intern’s academic commitment by corresponding to the academic calendar;
5. The internship’s duration is limited to the period in which it provides the intern with beneficiary learning;
6. The intern’s work complements (rather than displaces) the work of paid employees while providing significant educational benefits to the intern; and
7. The intern and employer understand there is no entitlement to a paid job at the internship’s conclusion.

These factors are difficult for employers to meet, and in most instances, interns who are working for the summer must be paid in a manner consistent with applicable law (i.e., minimum wage and overtime).