Simply Calling A Job An Unpaid Internship Does Not Make It So


As summer break is about to begin, there is a significant decrease in the number of paid summer jobs available for students. As an alternative, there are a number of students hoping to land internships in the private sector. Given the number of students vying for these positions and the country’s continued slow economic recovery, many companies are considering offering unpaid internships. However, simply because the student is willing to work for free does not necessarily mean that the company can do so without violating the Fair Labor Standards Act (FLSA) and related state wage and hour statutes.

Last year, the Department of Labor (DOL) issued a fact sheet providing general information to help determine whether interns must be paid for their services under the FLSA. Whether the FLSA applies to an internship depends on whether there is an employment relationship between the intern and the company. The FLSA defines the term “employ” very broadly and internships in the private sector will most often be viewed as employment unless the work is for the benefit of the intern. And if the interns qualify as employees, they must be paid at least the minimum wage and overtime compensation for hours worked over 40 in a work week.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Franczek Radelet P.C. | Attorney Advertising

Written by:


Franczek Radelet P.C. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.