I am currently overseeing an internship program for a local electrical municipality. We currently do not allow children of employees to be considered for our internships, but are looking at changing those rules. Does anyone else have a rule like that, or are you okay with hiring family members for internship opportunities?
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For our internships, we follow our company policy for hiring family members and do not allow family members to be hired within a business vertical. We align those verticals with our senior leadership team. In other words, family members can't be hired within Business Operations but could be hired in our IT department as these business verticals are led by separate senior leaders. I hope this makes sense. I'd be glad to provide more insight if it would help.
We do allow children of employees to be considered for internships. If selected, the child cannot be in the downline of the employee in order to manage the risk of a conflict.
We do allow children of employees to be considered; however, they cannot work in the same group as their parent.
When you say electrical municipality are you meaning a local body of government or city/town? You would need to check their rules. Our company allows employees families to apply, as long as they are not under direct supervision by their family member. Be mindful of the wording of your internship so as to be inclusive to all.

we do not have that rule. we actually really encourage family members to apply and support that. we don't have any formal recruiting bonuses, but we do encourage it. for example, more than a third of our interns this past summer were family members who applied through our process and were hired.