Business Should Exercise Caution With Unpaid Internships

The Fair Labor Standards Act ("FLSA") generally establishes mandatory minimum wage and maximum hour requirements for most employees in the United States. Generally, an individual is an employee under the FLSA if an employer permits the individual to work in the interest of the employer. Until recently, the Department of Labor's test for determining whether an unpaid intern was really an employee who should receive at least minimum wage under the FLSA was quite rigid and difficult to meet. Businesses planning to implement an unpaid internship program or with an existing internship program should be aware that in January, 2018, the Department of Labor ("DOL") issued a new more flexible test for determining whether an unpaid intern working for a for-profit employer is entitled to minimum wage under the FLSA. [More]