Guidelines for Determining Internship Program Compliance with the FLSA.
Before I dig into this topic, just want to clarify The Stagecraft Agency does not have unpaid internship programs. Even among our youngest, most ambitious recruits, we value their contribution and return their investment into learning the craft specific skills and talents involved in event production.
The fact sheet below was provided by the US Dept of Labor to help companies determine whether their programs and compliant with The Fair Labor Standards Act. For more information, we urge you to visit the US Dept of Labor at https://www.dol.gov
The FLSA requires “for-profit” employers to pay employees for their work. Interns and students, however, may not be “employees” under the FLSA—in which case the FLSA does not require compensation for their work.
The Test for Unpaid Interns and Students
Courts have used the “primary beneficiary test” to determine whether an intern or student is, in fact, an employee under the FLSA.2 In short, this test allows courts to examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship. Courts have identified the following seven factors as part of the test:
If analysis of these circumstances reveals that an intern or student is actually an employee, then he or she is entitled to both minimum wage and overtime pay under the FLSA. On the other hand, if the analysis confirms that the intern or student is not an employee, then he or she is not entitled to either minimum wage or overtime pay under the FLSA.
Obtain Additional Information
This publication is for general information and is not a regulation. For additional information, visit our Wage and Hour Division Website: http://www.wagehour.dol.gov and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).