DOL Issues Guidance On Internship Programs And Compliance With The FLSA

In April, the Department of Labor issued a Fact Sheet: Internship Programs Under The Fair Labor Standards Act.  http://www.dol.gov/whd/regs/compliance/whdfs71.pdf.  The Fact sheet provides guidance to assist in determining whether an intern for a "for-profit" private sector employer must be provided with minimum wage and overtime pay under the FLSA.  The DOL has identified six factors that must be considered when determining whether an internship or training program is legitimate and, therefore, interns need not be compensated:

1.  The internship, even though it includes actual operations of the facilities of the employer, is similar to training which would be given in an educational environment;

2.  The internship is for the benefit of the intern;

3.  The intern does not displace regular workers and is closely supervised by existing staff;

4.  The employer derives no immediate advantage from the activities of the intern and may, in fact, be impeded by the presence of the intern;

5.  The intern is not entitled to a job at the end of the internship; and

6.  There is an understanding that the intern is not entitled to wages for the time at the internship.

Common illegitimate "internships" involve unpaid positions where the "intern" is engaging in the operations of the business.  Where a student is asked to file, perform clerical work, or assist customers, the intern is providing productive work for the benefit of the employer and should be compensated.  Conversely, where the intern is shadowing rank-and-file employees and learning as opposed to working, that individual will likely be considered a legitimate intern, who need not be paid minimum wage or overtime.