by Jamie N. Rotteveel, Esq., Pepper Hamilton LLP, Philadelphia
Over the past year, unpaid internships have received increasing attention. By some estimates, more than a million people participate in internships each year in the United States, as many as half of them unpaid or for less than the minimum wage.
That can be a problem for employers: Misclassifying employees as unpaid interns can result in costly litigation, civil fines or both.
The Fair Labor Standards Act () requires paying the minimum wage and overtime to . However, the FLSA allows for-profit, private-sector employers to hire individuals for internships or training programs without compensation as long as the internship is primarily for the interns’ educational benefit.
DOL’s 6-part internship test
Because the FLSA’s definition of “employ” ( “to suffer or permit to work”) is extremely broad, most workers are considered employees and the ...(register to read more)