Summer is rapidly approaching. For businesses, however, the “living is not always easy” (or unpaid) where interns are involved.
Rather, whether an intern must be paid minimum wage and overtime under the Fair Labor Standards Act (“FLSA”) depends upon the facts and circumstances of each situation. The Department of Labor, which presumes all workers should be paid, has established a six part test to determine if an intern can lawfully not be paid:
According to the DOL every factor must be met. Thus, should an employer use interns, even temporarily, substitutes for, or to augment existing workers, the intern must be paid. Similarly, if the intern is hired at the end of the internship, they are entitled to be paid for the entire period of the internship according to the DOL.
Issues to consider beyond pay include workers compensation (in the event of an injury), unemployment compensation at the end of the relationship, noncompetition, confidentiality and nondisclosure agreements in the event the intern is exposed to sensitive or commercially important information and, of course, discrimination.
For questions regarding interns or other employment law related topics please contact the ZKS attorney you regularly utilize or Morey Raiskin at either 407-563-4422 or firstname.lastname@example.org
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