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Labor Department adopts primary beneficiary test for interns

The primary beneficiary test emphasizes a seven-factor test that was first elucidated by the U.S. Court of Appeals for the Second Circuit. It is non-exhaustive and requires all factors to be considered overall, with none being determinative. These factors include the understandings of the parties, the type of training provided, the connection to formal education, accommodations of academic commitments, the limitation of the time period, the relationship of the intern’s work to that of paid employees and the understanding about the potential for later paid work.

Employers with internship programs may benefit from reviewing this seven-factor test to ensure that their programs fall safely within the guidelines of wage and hour laws. Egan Law Firm may be able to assist employers in developing an internship framework that meets the Department of Labor standards and prevents confusion and unnecessary litigation.

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