Employer Law Report

Tag Archives: unpaid internship

New test should increase employer ability to create unpaid internship positions

Many employers allow students to intern in their workplaces so that the students can gain exposure to real world work, learn about a particular industry or career, or earn credit hours towards their degree requirements. If these interns are unpaid, however, employers risk liability for failure to pay minimum wage and overtime under the Fair Labor Standards Act (FLSA). Employers that enter into these arrangements without careful consideration of the FLSA risk lawsuits from former interns and United States Department of Labor (DOL) investigations.…

Hiring Unpaid Summer Interns? Keep These Important Tips In Mind

Find an updated post on this topic, published May 7, 2018, here. 

 

Many employers allow students to intern in their workplaces so that the students can gain exposure to real world work, learn about a particular industry or career, or earn credit hours towards their degree requirements. However, if these interns are unpaid, employers risk liability for failure to pay minimum wage and overtime under the Fair Labor Standards Act (FLSA). Employers that enter into these arrangements, often made with the intent of helping students and being good corporate citizens, without careful consideration risk lawsuits from former interns, including …

Sixth Circuit Applies “Primary Benefit” Test To Uphold Unpaid Internship Program

In a decision issued on April 28, 2011, the Sixth Circuit Court of Appeals offers employers some clarity on the test to determine whether using unpaid interns or other student trainees violates the Fair Labor Standards Act (FLSA). In this case, Solis, Secretary of Labor v. Laurelbrook Sanitarium and School Inc., 6th Cir. No. 09-6128, the Court threw out a U.S. Department of Labor lawsuit against a Tennessee religious school’s student work experience program.

The Department of Labor brought an action against the Laurelbrook school alleging that its students were "employees" and had to be paid under the FLSA. …

DOL to Scrutinize Unpaid Internships

As noted in a recent New York Times article, researchers have found that the number of unpaid internships has risen, likely due to employers’ limited ability to provide new paying jobs and students’ willingness to gain increasingly hard-to-come-by experience. However, officials from the Department of Labor have indicated that many unpaid internship arrangements violate federal law. Nancy Leppink, Acting Director of the DOL’s Wage and Hour Division, stated: "If you’re a for-profit employer or you want to pursue an internship with a for-profit employer, there aren’t going to be many circumstances where you can have an internship and not be paid and …

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