Keep interns, employees separate to ensure FLSA compliance

Cases of private-sector, unpaid interns suing companies because they believe they have performed work duties are on the rise, according to The National Law Review.

The six-part test used by the U.S. Department of Labor to determine if an internship is valid, and therefore exempt from employee time and payment standards, is relatively straightforward. Some highlights of the policy are below.

The purpose of the internship must be educational and beneficial to the intern, it cannot simply be work under another name. The position has to be similar to the training or instruction given in a school or other educational setting. Also, interns cannot be guaranteed a job at the end of their study.

The intern cannot be used instead of other company employees and must learn from and be supervised by those workers. This is where a distinction between job shadowing and regularly performing actual duties is important. Interns and company management must enter the situation under the agreement that there are no wages promised to the intern.

The educational benefits an intern receives must be general and cannot apply to a specific position or job.

If your company utilizes interns, taking the time to remember this information and reviewing the Department of Labor's six-step test will help ensure compliance.