As summer internship season approaches, employers should carefully institute internship programs which comply with the requirements of the Fair Labor Standards Act (FLSA). 

The Test.

In the case of “for-profit” companies, unpaid internships must meet the strict criteria of the FLSA.  Specifically, as stated in U.S. Department of Labor’s (DOL) FLSA Fact Sheet #71 unpaid interns must:

1. Receive training similar to that provided in an educational environment
2. Be for the benefit of the intern, and not the employer
3. Not displace regular paid employees
4. Be closely supervised by existing staff
5. Not be used for the immediate advantage of the employer (and in some cases, may impede the employer’s operations)
6. Not necessarily be entitled to a job after the end of the internship
7. Understand that the intern is not entitled to wages for time spent in the internship

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