DOL Adopts the “Primary Beneficiary” Test for Internship Programs

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As summer months approach and students begin searching for seasonal employment, many employers are faced with the logistics of internship programs, specifically whether an unpaid internship meets the requirements of the Fair Labor Standards Act (“FLSA”). In other words, does an individual qualify as an “intern” – such that they are not required to be paid per the FLSA – or is he or she actually functioning as an “employee” who must be paid accordingly? A recent development in this arena is discussed herein.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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