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Six degrees of meeting the definition of "employee"


The definition of "employee" under the Fair Labor Standards Act is quite broad, and it covers many unpaid interns. Only unpaid internships that build skill and meet the Department of Labor's six-part test are exempt from minimum-wage laws.

The following six criteria must be applied when making this determination:

The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;

The internship experience is for the benefit of the intern;

The intern does not displace regular employees, but works under close supervision of existing staff;

The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;

The intern is not necessarily entitled to a job at the conclusion of the internship; and

The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

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