Summer is almost here, which means that students are trading in
their flip flops and sunglasses for suits and padfolios as they
prepare to start their summer internships. It is important that the
for-profit companies, gearing up to welcome these eager students
into their workplace for the summer, are informed of and comply
with the federal and state regulations on compensation for summer
interns.
The federal Fair Labor Standards Act ("FLSA") requires
employers to pay employees for their work. Accordingly, the
important question to consider is whether the company's summer
intern class consists of "employees" or of
"students/interns." The Department of Labor's
("DOL") "primary beneficiary test," issued in
January 2018, provides factors that are taken into
consideration to determine whether the person is an
"employee," therefore entitled to compensation under the
FLSA. Review those factors here. In addition to compliance
with the federal regulations, companies must