Compensation and Benefits Information

Compensation

Co-op salaries are the decision of the employer and vary by major and level of experience, but it is expected that student employees will be paid a wage comparable to other employees having similar responsibilities. Major-specific salary information can be found in the Undergraduate Co-op Salary Guide.

Drexel Co-op is a competitive program; thus, the rate of pay may impact an employer's success in recruiting desirable candidates.

With the exception of C-Round, salaries are conveyed to students during the SCDConline rankings process. Students are NOT permitted to negotiate any facet of co-op employment terms, including but not limited to salary, hours/week, or length of employment.

While the majority of co-op positions are paid and full-time (32-40 hours per week), to receive credit for co-op students must work a minimum of 20 hours per week.

Additional Compensation (Optional)

Some employers may offer housing, relocation costs, transportation stipends, or other perks as part of the offer. This is entirely up to you.

Housing and Relocation Costs

Housing and the costs associated with relocation are ultimately the responsibility of the student. While it is not a requirement, some co-op employers may cover all or part of relocation and/or housing costs. Locating appropriate housing can be a challenge for students; therefore, many co-op employers do provide some guidance to help prepare the student for relocation.

Fair Labor Standards Act

Co-op employers should be aware that the Fair Labor Standards Act (FLSA) and related state and local statutes may govern the relationship between employers and co-op students (including minimum wage and overtime). Depending on the compensation and location of the job, it is encouraged that organizations consider offering incentives such as stipends, housing and relocation assistance, transportation assistance, or industry-specific opportunities in order to attract the best candidates. Employers are encouraged to review the Department of Labor Fact Sheet Regarding Unpaid Interns and Students to determine whether its provisions are relevant to the circumstances of their co-op positions.

Consultants and Independent Contractors

The Steinbright Career Development Center does not support co-op students being hired as independent contractors. It is in the best interests of co-op students and co-op employers to hire students as regular full-time employees. The IRS has repeatedly stated that 1099 status is reserved for individuals who are experts in their field and who require little to no supervision. The IRS defines independent contractors as self-employed and states that "if an employer-employee relationship exists (regardless of what the relationship is called), you are not an independent contractor." Due to the supervision and relationship implications of the relationship between an organization and an independent contractor as well as the tax implications for students, it is never appropriate that a co-op student should be considered or paid in this manner.

Benefits and Health Insurance

While working, co-op student employees are full-time students and they can retain their current health insurance plan. Any benefits, such as vacation days or paid holidays, are at the discretion of the employer. Any questions about benefits or eligibility should be directed to the employer's human resources specialist.

Taxes

Co-op students are considered employees of the company; therefore, all federal and state laws and regulations apply. Co-op employers are responsible for withholding all deductions required by federal and state income tax laws from the wages of co-op student-employees. Students with an F-1 visa pay all applicable federal, state, and city/local taxes. However, they are exempt from paying FICA (Medicare and Social Security) taxes.