Is Your Intern Program Legally Compliant?
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Learn how to structure a compliant internship program that meets wage and hour guidelines.For many years, the United States Department of Labor (DOL) used the six-factor test when determining whether an employee was legally considered an unpaid intern, such that the intern would not be subject to the wage and hour requirements of the Fair Labor Standards Act. This changed at the beginning of 2018 when the DOL adopted the Second Circuit's primary beneficiary test in a move allowing increased flexibility for employers and greater opportunity for unpaid interns to gain valuable industry experience. Employers that fail to follow the requirements to ensure an intern may properly be treated as an unpaid intern, rather than an employee who is entitled to minimum wages and overtime, can face costly wage and hour litigation. This content will discuss the seven factors that make up the primary beneficiary test and help you develop a lawful unpaid internship program. This material will also prepare you to administer an internship program by providing key considerations for all stages of the internship process.
AuthorsNancy Gunzenhauser Popper, Epstein Becker & Green, P.C. Anastasia A. Regne, Epstein Becker & Green, P.C.
Legal Analysis - Do Wage and Hour Laws Apply to Internships?
• Definitions Under the FLSA
• Trainee Exception
Litigation History Regarding Intern Exception
• DOL's Traditional Six-Factor Test
• Second Circuit's Primary Beneficiary Test
United States DOL Adopts the Primary Beneficiary Test
• Why the DOL Adopted the Primary Beneficiary Test
• A Break Down of the Primary Beneficiary Test
Tests in Other Jurisdictions
• Tests in Other Circuit Courts
• New York's Intern Test
• New Jersey's School to Work Program
Different Standards for Nonprofits and the Public Sector
• Interns in Not-for Profit Businesses - New York State Guidance
• FLSA Regulations on Internships in the Public Sector
Wage and Hour Requirements If Interns Are Employees
• Do Interns Have to Be Paid?
• Minimum Wage and Overtime Considerations Under the Biden Administration
Internships in the Remote Work Era
• Pitfalls of Remote Internships
• How to Remain Compliant When Interns Work From Home
• Before the Internship
• During the Internship
• After the Internship