News & Analysis as of

Unpaid Interns Internships Primary Beneficiary Test

Federal DOL Updates Guidance On FLSA Compliant Internship Programs

by Shipman & Goodwin LLP on

On occasion, many businesses provide unpaid internship opportunities. However, it is important to be sure the unpaid internship does not run afoul of the Fair Labor Standards Act, as some companies have learned the hard way...more

Don't Call it a Comeback: New Rules Could Revive Unpaid Internships

by Varnum LLP on

The U.S. Department of Labor (DOL) recently announced new guidelines regarding unpaid internships, easing standards for for-profit employers to use unpaid interns. These new guidelines may greatly benefit startups,...more

Second Circuit Provides Guidance on Intern-Employee Test

by FordHarrison on

On December 8, 2017, the United States Court of Appeals for the Second Circuit (which has jurisdiction over federal district courts in Connecticut, New York and Vermont) ruled in favor of an employer, holding that six unpaid...more

Employment Law Commentary, February 2018, Volume 30, Issue 2 - A Changing Landscape: Unpaid Internships Under the DOL's New...

by Morrison & Foerster LLP on

As companies begin to think about their summer internship programs, they may want to consider the recent change in the legal landscape surrounding unpaid internships. For good reason, companies have generally been concerned...more

II-28 – The New Relaxed Intern Standard and Implications for Employers

by Cozen O'Connor on

Is your company thinking about your summer (and other) internship program? This episode presents an interview that Mike just gave on the Sirius XM Wharton Business Channel to discuss the United States Department of Labor’s...more

Unpaid Internships: Federal Law Evolving, Garden State Unchanged

by Clark Hill PLC on

In January, the Department of Labor announced that it would use a new method to determine whether interns or students working for non-profit organizations should be paid under the Fair Labor Standards Act. The DOL’s new...more

Federal Employment Law Updates

by White & Case LLP on

New Tax Law Limits Deductibility of Confidential Sexual Harassment and Abuse Settlements - Effective December 22, 2017, new Section 162(q) of the Internal Revenue Code of 1986, as amended (the "Code"), denies businesses...more

The Department of Labor Wishes You a Happy New Year — and Implements Employer-Friendly Changes Regarding Interns and Volunteers

On January 5, 2018, the Department of Labor announced two employer-friendly changes applicable to interns and volunteers. Specifically, the DOL has adopted an employer-friendly approach to internships and has reinstated a...more

DOL Announces Policy Change Making It Easier for Employers to Utilize Unpaid Interns

by Reminger Co., LPA on

In June 2017, the U.S. Secretary of Labor announced the withdrawal of Obama-era informal guidance from the Department of Labor (“DOL”) on the issues of joint employment and independent contractors, both of which had been...more

DOL Throws in Towel on Standard for Unpaid Internships

Last month, the Ninth Circuit Court of Appeals became the fourth appellate circuit to reject the Department of Labor’s six-part test for determining whether internships at for-profit companies must be paid. The DOL test...more

DOL Adopts Employer-Friendly Standard to Assess If Workers Are Interns or Employees

by Blank Rome LLP on

In recent years, employers have used unpaid interns to perform many duties otherwise completed by paid employees. Determining whether to classify a worker as an unpaid intern or employee under the Fair Labor Standards Act...more

Unpaid Intern or Employee? - DOL’s Enforcement Policy Is Changing

by Smith Anderson on

In a news release issued this month, the federal Department of Labor (DOL) advised that it will begin using a more flexible test to determine whether interns are really employees. This is important, in part, because...more

DOL Clarifies Approach to Unpaid Internships

by Hogan Lovells on

Earlier this month, US employers received important news just as the season of hiring summer interns is set to begin. The Department of Labor (“DOL”), through Fact Sheet #71, clarified its position regarding unpaid...more

DOL Adopts New Standard for Determining Whether Unpaid Interns Are ‘Employees’

by Morgan Lewis on

The US Department of Labor will now apply a “primary beneficiary” test, which was previously adopted by several courts and provides greater flexibility in structuring internship programs....more

DOL Updates Guidance on Unpaid Interns, Embracing Circuit Courts' Approach

by Littler on

The U.S. Department of Labor recently announced a significant change in its interpretation of the Fair Labor Standards Act (FLSA) with respect to interns. The FLSA, of course, regulates an employer’s duty to pay minimum wage...more

Are Your Unpaid Interns Actually Interns? Six-Factor Test Is Out, and Primary Beneficiary Test Is In

by Pierce Atwood LLP on

The U.S. Department of Labor (DOL) recently announced that it will adopt a new, more flexible test for distinguishing interns from employees under the Fair Labor Standards Act (FLSA)....more

Are You Required to Pay Your Interns?

by Foley & Lardner LLP on

For-profit employers occasionally bring on unpaid interns to work at the company. The question employers must ask is whether an unpaid intern is actually an employee and, therefore, entitled to be paid minimum wage and...more

U.S. Department of Labor Issues New Guidance on Unpaid Interns

by Davis Wright Tremaine LLP on

The United States Department of Labor (the “USDOL”) has revised its Fact Sheet #71 guidance on unpaid internship programs at “for-profit” businesses (the “Guidance”). That Guidance is consistent with rulings by a majority of...more

U.S. DOL Follows Circuit Courts, Adopting “Primary Beneficiary” Test to Determine Whether Unpaid Interns Are Employees

by Epstein Becker & Green on

In a move allowing increased flexibility for employers and greater opportunity for unpaid interns to gain valuable industry experience, the United States Department of Labor (“DOL”) recently issued Field Assistance Bulletin...more

Is Your Intern Really An Intern Or An Employee – DOL Adopts The “Primary Beneficiary Test”

by Cole Schotz on

As the winter months bear down on us, many of us find our thoughts wistfully drifting to sun, sand, and all things summer. Summer months, however, also bring (for most employers) summer interns and one of the more befuddling...more

Paving the Way for Unpaid Interns: Trump Administration Relaxes the Standards

by Bryan Cave on

Internships are often a great way for students and young people to get their foot in the door and land their first job. But employers must ask themselves: is your unpaid intern actually an intern, or is the “intern” really an...more

U.S. Department Of Labor Endorses More Flexible Unpaid Intern Test

by Pepper Hamilton LLP on

Q. Our company wants to establish an internship program and host student interns to work alongside our employees. Do we need to pay the interns? A. Possibly. Over the past few years, courts and the Department of Labor...more

Labor Department Adopts ‘Primary Beneficiary’ Test For Determining Employee Status Of Interns, Students

by Jackson Lewis P.C. on

The Department of Labor has decided to align its analysis under the Fair Labor Standards Act (FLSA) of the intern-vs.-employee determination with that of the majority of federal appellate courts to have addressed the issue,...more

Department of Labor Adopts More Employer-Friendly Standard for Unpaid Internships

The Fair Labor Standards Act (“FLSA”) mandates the payment of minimum wage and overtime to employees in most US workplaces. However, when it comes to unpaid educational internships, the FLSA does not include a helpful...more

U.S. Department of Labor Adopts New Test to Determine if Interns Are Really Employees

As summer approaches, many employers are considering “hiring” summer interns, as well as what to pay them, if anything. Some employers will consider engaging the services of unpaid interns, sometimes at the request of eager...more

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