Question

The Fair Labor Standards Act (FLSA) specifies employee rights, including minimum wage and overtime pay. Students often work in unpaid internships, and employers are not obligated to comply with the FLSA if the student is receiving an educational opportunity, as opposed to providing free labor for a company. The U.S. Department of Labor requires compliance with the FLSA, including payment of wages and overtime when an intern is solely assisting in a company’s operations. For this discussion, you will be considering when an employer should be obligated to comply with the FLSA and compensate its interns. Before you begin, review the United States Department of Labor (DOL) tests for determining when an intern should be compensated. For your initial response, describe an intern and an internship situation that you believe meets the DOL tests for remaining an unpaid internship In describing the situation, take all of the test provisions into consideration

Answer 1

The United States Department of Labour (DOL) has set up few new rules in consideration of the compensation of an intern in an organisation.A test is being conducted by the DOL to assess whether the employer and the intern are following the rules and that test is called as the primary beneficiary test They are as follows:

a. A promise of compensation that is to be paid to the intern by the employer and the same goes for the intern.

b. The amount of time the intern accomodates for the employer in consideration to the academic calendar of the intern.

c. The internship provides that kind of training which is similar to the training that the intern would in his or her educational institution.

d. The contribution of the intern complements the work of the regular employees and does not distract or displace their work.

e. The terms and conditions of a paid job offer once the intern has completed the internship period. This should be equally accepted by both the parties.

f. The duration of the internship helps the intern come up with some beneficial learning.