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ARTICLE · 25 MAY 2018

Summer Internships: Should They Be Paid Or Unpaid?

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.

United StatesEmployment and HR

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

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