January 10, 2018
The United States Department of Labor rescinded its 2010 guidance for assessing whether persons qualify as interns rather than employees under the federal Fair Labor Standards Act. Instead, the DOL aligned itself with the so-called “primary beneficiary” standard announced by the Second Circuit in its 2015 Glatt v. Fox Searchlight Pictures, Inc. decision. The Glatt test uses a seven factor “primary beneficiary” test to distinguish employees (who qualify for FLSA’s minimum wage and overtime protections) from interns (who don’t), analyzing the “economic reality” of interns’ relationship with their employer to determine which party is the primary beneficiary of the relationship.
Follow the link to read DOL’s revised Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act.
This article is intended only as a general discussion of these issues. It is not considered to be legal advice or relied upon. If you have a question regarding the classification of an intern or employee, Larry Brocchini would be pleased to consider providing additional details or advice about specific situations.