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Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?


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This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

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May 25, 2010
How to Determine If Your Interns Should Be Paid
With summer right around the corner, organizations looking for summer interns need to need to know if their interns should be paid under the Fair Labor Standards Act (FLSA). The U.S. Department of Labor's Wage and Hour Division (WHD) released a six factor test that employers can use to determine if their interns should be paid.

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What employers need to ask themselves :

  1. The internship is more about education than contributing to company operations
  2. The primary benefit of the internship is derived by the intern
  3. The intern does not displace employees
  4. The employer derives no immediate advantage from the activities of the intern
  5. There is no guarantee of a job when the internship is over
  6. All parties understand there will be no compensation for the internship

In general, nonprofit organizations may be allowed to hire unpaid interns. However, for-profit employers should use the test above to determine whether the intern is classified as an employee. If they are, then they must pay interns at least minimum wage.

The WHD updated its Fact Sheet in April 2010, discussing when employers can and cannot forgo paying interns. For additional information, visit the Wage and Hour Division website or call their toll-free helpline at 1-866-4USWAGE.

Related articles:
Intern or Employee? The 6-Factor Test

Featured Special Report:
Top 100 FLSA Overtime Q&As
   
   
 
 
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