Although summer seems far away, now is the time when most employers begin to prepare for their summer internship programs. Internships are a great way to give college students or new professionals some hands-on experience in your industry. However, one major question that has plagued employers over the past decade is whether an intern must be paid under the Fair Labor Standards Act (“FLSA”) based on the duties he or she performs in the intern role and the structure of internship program.
While some employers offer paid internships, other internships are unpaid or only provide a stipend lower than the minimum wage. Given the recent string of high-profile class action cases brought by unpaid interns, for-profit, private sector employers must be aware of the FLSA’s requirements as it relates to unpaid interns. Specifically, employers need to carefully evaluate whether an intern qualifies as an “unpaid intern” or an “employee” entitled to compensation. Continue reading