09 Feb DOL Announces New Standard for Unpaid Interns
The the U.S. Department of Labor (DOL) Announced New Standard for Unpaid Interns. What does this mean for you, the Producer?
- The DOL has replaced its six-part test for unpaid interns in favor of the primary beneficiary test.
- The primary beneficiary test has been used by several federal appellate courts.
- The primary beneficiary test requires considering the totality of the circumstances to determine employee status under the Fair Labor Standards Act (FLSA).
- Employers should review how the primary beneficiary test applies to interns at their organizations. The DOL has provided an updated fact sheet for employers to use.
- Employers should also make sure that any unpaid intern programs primarily benefit their interns and not the company.
Knowing that this DOL decision will impact employers, we are happy to provide our complimentary Compliance Bulletin for a complete overview including the Old Six-part Test.