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Are Interns Employees?

By Matthew Nelson

Employers cannot avoid the requirements of federal law by simply labeling employees as “interns” or “trainees.” As a general rule, those engaged in legitimate internships or training programs are not covered by federal employment law. But if the would-be intern or trainee is actually an employee by another name, an employment relationship exists, and the intern or trainee is entitled to all the benefits and protections of federal law. These include the rights to minimum wage, overtime, and a discrimination-free workplace.

The issue, then, is whether an employment relationship in fact exists; whether, despite the title, the would-be intern or trainee is actually an employee. Unfortunately, none of the primary federal employment laws, specifically the Fair Labor Standards Act and the anti-discrimination statutes, provide any meaningful guidance on the distinction between employees and interns or trainees. Thus, the question has been left to the Department of Labor and the federal courts. And as is normally the case in such situations, the DOL and the courts have developed a highly fact-specific analysis, and even then, whether an employment relationship exists is not always clear. Instead, whether an intern or trainee is entitled to such things minimum wage and overtime compensation will often depend upon whether the individual is receiving training without displacing other employees or providing any real benefit to the employer.

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