Compensation and Benefits Information
We hope the following information will provide guidance as you plan for your co-op position. For additional support, we encourage you to reach out to Employer Relations and work closely with your co-op advisor.
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, rate of pay
may impact an employer's success in recruiting desirable
With the exception of C Round, salaries are conveyed to students
during the SCDConline rankings process. Students are not
permitted to negotiate salaries through the SCDConline
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
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.
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.