According to the Department of Labor, there are limited circumstances in which private-sector employers can offer unpaid internships under the Fair Labor Standards Act (FLSA). Employers should ensure their internship programs comply with the law. Generally, interns must be paid for their work. However, under certain specific circumstances, interns are not considered employees and do not need to be paid. To assist employers with determining whether interns qualify as employees, the Department of Labor (DOL) uses a “primary beneficiary test.” The test considers seven factors when assessing whether an intern should be paid. These seven factors help clarify the “economic reality” of the intern/employer relationship and who gets the primary benefit from that relationship.
The seven factors are...
