Quote from CaptKris
This is the difference between the legal terms of "internship". An intern is not actually supposed to complete any work solo. Much like a student. It would be a violation of labor laws if an intern took a patient solo for a shift. So the employee is either being trained, being hired for an internship, or just hired. Pick one. The 10k clawback is a very legally grey area and I suspect it would not pass muster in court.
Labor laws state only that an intern is used for purposes other than education is owed minimal wage. It doesn't state that you can't care for a patient. Internships may be paid or unpaid and may or may not carry an offer of regular employment upon successful completion of the internship and/or school term. Learning by doing and being exposed to professionals working in the field provides valuable experience, a professional reference and often leads to a position.
The Fair Labor Standards Act (FLSA) defines the term “employ” very broadly as including to “suffer or permit to work.” Covered and non-exempt individuals who are “suffered or permitted” to work must be compensated under the law for the services they perform for an employer. Internships in the “for-profit” private sector will most often be viewed as employment, unless the test described below relating to trainees is met. Interns in the “for-profit” private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek U.S. Department of Labor - Wage and Hour Division (WHD) - Fact Sheet
The Test For Unpaid Interns
There are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do so without compensation. The Supreme Court has held that the term "suffer or permit to work" cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns who receive training for their own educational benefit if the training meets certain criteria. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program.
The following six criteria must be applied when making this determination:
- The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
- The internship experience is for the benefit of the intern;
- The intern does not displace regular employees, but works under close supervision of existing staff;
- 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;
- The intern is not necessarily entitled to a job at the conclusion of the internship; and
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
The cost of new grads consists of materials/copies of handouts for policies, the salary it takes to have educators on staff. Paying the new employees for non productive (non bedside hours) paying for extra staffing above the norm to accomodate the neew grad for having a mentor and not being counted in staffing norm as well as any fees necessary for CPR, EKG training ACLS etc.