Businesses that are contemplating hiring “unpaid interns” for seasonal summer work should critically assess whether those internships actually qualify as paid positions. The Fair Labor Standards Act (“FLSA”) defines the term “employ” very broadly as including to “suffer or permit to work.” Internships in the “for-profit” private sector will generally be viewed as employment, unless the six-criterion test described below is met:
Rule #1: The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or academic educational instruction.
Rule #2: The training is for the benefit of the trainees.
Rule #3: The trainees do not displace regular employees, but work under their close observation.
Rule #4: The employer that provides the training derives no immediate advantage from the activities of the trainees and, on occasion, the employer’s operations may actually be impeded.
Rule #5: The trainees are not necessarily entitled to a job at the conclusion of the training period.
Rule #6: The employer and the trainees understand that the trainees are not entitled to wages for the time spent in training.
If all six factors are met, an employment relationship does not exist and the FLSA’s minimum wage and overtime provisions do not apply to the intern.
A member of the firm's Bloomfield Hills office, Courtney L. Nichols serves as Co-Leader of Plunkett Cooney's Labor and Employment Law Practice Group.
Ms. Nichols focuses her litigation practice in the area of employment law ...
Add a comment
- Employment Liability
- Labor Law
- Employment Discrimination
- Human Resources
- Minimum Wage
- Equal Employment Opportunity Commission (EEOC)
- Wage & Hour
- Paid Medical Leave Act (PMLA)
- Department of Labor (DOL)
- Employment Agreement
- Fair Labor Standards Act (FLSA)
- Regulatory Law
- OSHA Issues
- Family Medical Leave Act (FMLA)
- Americans With Disabilities Act (ADA)
- National Labor Relations Act
- Title VII
- Hostile Work Environment
- Sick Leave
- Business Risk Management
- Noncompete Agreements
- Workplace Harassment
- Department of Justice
- National Labor Relations Board
- Medicare Issues
- Transgender Issues
- Workers' Compensation
- Unemployment Benefits
- Whistleblower Protection Act
- Sexual Harassment
- Civil Rights
- Class Actions
- Social Media
- Retail Liability
- Emergency Information
- Uniformed Services Employment and Reemployment Rights Act (USERRA)
- Department of Education (DOE)
- Tax Law
- Title IX
- Medical Marijuana
- Right to Work
- Health Insurance Portability and Accountability Act (HIPAA)
- Union Organizing & Relations
- Court Delays Ruling on Fate of Michigan’s Paid Sick Leave, Minimum Wage Laws Until February 2023
- Michigan Supreme Court Affirms State’s Civil Right Law Prohibits Discrimination Based on Sexual Orientation
- DOJ Issues Guidance on ADA, Opioid Crisis Issues
- Congress Passes Law, With Retroactive Effect, to Invalidate Forced Arbitration Provisions at the Employee’s Election
- U.S. Supreme Court Temporarily Blocks Implementation of Vaccine Requirement for Large Businesses
- Contractual Limitations Periods STILL Alive and Well... on job Applications!
- Federal Appellate Court Takes Brakes Off COVID-19 Vaccine Mandate Carousel
- Employers: Hang on for Another Spin Around the Vaccine Mandate Carousel
- Stray Comments can Lead to Employer Liability
- President Biden's COVID-19 Vaccine Mandates Face Uncertain Future