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Is Your Unpaid Intern Really an Employee?

by Martin Salcedo, Esq. - The Human Equation on 3/12/2013
woman training man in the workplace

The Fair Labor Standards Act (FLSA) establishes federal standards for minimum wage and overtime compensation. Under the FLSA, interns in the for-profit private sector will generally be viewed as employees entitled to compensation except in very limited circumstances.

Whether an individual working in an internship or training program is considered an employee that should be paid minimum wage and overtime compensation under the FLSA depends on the facts and circumstances. When making this determination, the following criteria must be applied to each particular situation:

  1. The internship, even though it includes performing actual work, is similar to training which would be given in an educational environment;
  2. The internship experience is for the benefit of the intern;
  3. The intern works under close supervision of existing staff and does not displace regular employees;
  4. The employer derives no immediate advantage from the activities of the intern, and its operations may occasionally be impeded by the intern;
  5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
  6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
More...

To Pay or Not to Pay: Internships Under the Fair Labor Standards Act

by The Human Equation, Inc. on 1/12/2011

Many employers utilize the services of interns without giving much consideration to whether these volunteer workers should be compensated. In fact, employers often operate under the assumption that interns never need to be compensated. More...

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Categories: 2011

The Human Equation's newsletters and publications are intended as an information source for the clients and friends of the firm. Their content should not be construed as legal advice, and readers should not act upon the information in these publications without professional guidance. Please note that newsletters and publications that are archived by The Human Equation are not updated after initial publication and may not contain the most current information available.

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