--- title: "How To Hire Unpaid Interns | FLSA Unpaid Internships" description: "" url: "https://wimlaw.com/articles/so-you-want-to-hire-an-unpaid-intern-the-department-of-labor-has-some-new-guidelines" date: "2026-06-23T16:31:54+00:00" language: "en-US" --- # So You Want to Hire an Unpaid Intern: The Department of Labor Has Some New Guidelines Written on January 15, 2018. *Tag(s):* [Department of Labor (DOL)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=56:dol), [FLSA (Fair Labor Standards Act)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=70:flsa) The Department of Labor has issued new guidelines for employers that want to hire unpaid interns. These new guidelines are much less stringent than the previous Obama-era guidelines and should allow more employers to set up qualified unpaid internships. Keep in mind that the FLSA requires "for-profit" employers to pay employees for their work. Interns and students, however, may not be "employees" under the FLSA—in which case the FLSA does not require compensation for their work. Application of the new guidelines will determine whether an intern should be paid or not. The new DOL guidelines use a 7 factor "primary beneficiary test" to determine whether an intern or student is, in fact, an employee under the FLSA. This test allows courts to examine the "economic reality" of the intern-employer relationship to determine which party is the "primary beneficiary" of the relationship. The following seven factors are part of the test: 1. The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee—and vice versa. 2. The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions. 3. The extent to which the internship is tied to the intern's formal education program by integrated coursework or the receipt of academic credit. 4. The extent to which the internship accommodates the intern's academic commitments by corresponding to the academic calendar. 5. The extent to which the internship's duration is limited to the period in which the internship provides the intern with beneficial learning. 6. The extent to which the intern's work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern. 7. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship. The "primary beneficiary test" is supposed to be a flexible test, and no single factor is determinative. Accordingly, whether an intern or student is an employee under the FLSA necessarily depends on the unique circumstances of each case. If analysis of these circumstances reveals that an intern or student is actually an employee, then he or she is entitled to both minimum wage and overtime pay under the FLSA. On the other hand, if the analysis confirms that the intern or student is not an employee, then he or she is not entitled to either minimum wage or overtime pay under the FLSA. Pro tip: When in doubt, it is always safer to go ahead and pay an intern at least the minimum wage. - [](https://x.com/intent/post?url=https%3A%2F%2Fwimlaw.com%2Farticles%2Fso-you-want-to-hire-an-unpaid-intern-the-department-of-labor-has-some-new-guidelines.md&text=) - [](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwimlaw.com%2Farticles%2Fso-you-want-to-hire-an-unpaid-intern-the-department-of-labor-has-some-new-guidelines.md) - [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwimlaw.com%2Farticles%2Fso-you-want-to-hire-an-unpaid-intern-the-department-of-labor-has-some-new-guidelines.md) - [](mailto:?subject=So%20You%20Want%20to%20Hire%20an%20Unpaid%20Intern%3A%20The%20Department%20of%20Labor%20Has%20Some%20New%20Guidelines) ![Kathleen J. Jennings](https://wimlaw.com/images/resources/articles/2020/06/kathleen-portrait-300.jpg) Kathleen J. Jennings Former Principal Kathleen J. Jennings is a former principal in the Atlanta office of Wimberly, Lawson, Steckel, Schneider, & Stine, P.C. She defends employers in employment matters, such as sexual harassment, discrimination, Wage and Hour, OSHA, restrictive covenants, and other employment litigation and provides training and counseling to employers in employment matters. ## Related Content [ ![sign: please stay on the path](https://wimlaw.com/media/yootheme/cache/0f/mark-duffel-U5y077qrMdI-unsplash-0f871084.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1574:dol-contractor-rule&catid=53) ### [DOL Proposes New Independent Contractor Rule](https://wimlaw.com/index.php?option=com_content&view=article&id=1574:dol-contractor-rule&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1574:dol-contractor-rule&catid=53) [ ![stopwatch](https://wimlaw.com/media/yootheme/cache/37/stanislav-2Yj6MBvJ0sg-unsplash-37e63040.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1567:flsa-employer-employees-exempt&catid=53) ### [Is an Employer Required to Classify Employees as Exempt?](https://wimlaw.com/index.php?option=com_content&view=article&id=1567:flsa-employer-employees-exempt&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1567:flsa-employer-employees-exempt&catid=53) [ ![pen and calculator](https://wimlaw.com/media/yootheme/cache/72/recha-oktaviani-h2aDKwigQeA-unsplash-72189013.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1568:discretionary-bonuses-overtime-calculations&catid=53) ### [Must Discretionary Bonuses Be Included in Overtime Calculations?](https://wimlaw.com/index.php?option=com_content&view=article&id=1568:discretionary-bonuses-overtime-calculations&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1568:discretionary-bonuses-overtime-calculations&catid=53) ## Get Email Updates Receive newsletters and alerts directly in your email inbox. Sign up below. ## Recent Content [ Articles ](https://wimlaw.com/index.php?option=com_content&view=category&id=205) [ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)### [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) A January 20, 2026, class action filed against Eightfold AI, Inc. in California is sending shockwaves through the employer and AI community… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53) [ ![danger sign, skull](https://wimlaw.com/media/yootheme/cache/01/mikael-seegen-jX6WXNkvsPs-unsplash-01c1ebef.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)### [The Dangers of Employers Using AI Research Tools as to Discovery Requests from Plaintiffs](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) A second “bombshell” affecting HR pertaining to AI is a federal court ruling in New York, that a defendant’s use of AI in researching and p… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53) [ ![CHAT GPT](https://wimlaw.com/media/yootheme/cache/64/emiliano-vittoriosi-fvxNerA8uk0-unsplash-64a16be4.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)### [Two Subsequent Cases Protect Defendant’s Use of AI as Subject to Work-product Protection](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) Soon after the deciding of the above-discussed case on February 17, 2026, in U.S. v. Heppner, a criminal case in the District Court for the… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53) [ ![avoid, wave away](https://wimlaw.com/media/yootheme/cache/6f/priscilla-du-preez-NQTphr4Pr60-unsplash-6fb4df83.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)### [Is There Anything an Employer Can Do to Avoid Waiving Privileges in Using AI Research Tools?](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) There are no easy answers to the above question, but some general observations will nevertheless be made. First, the New York district cou… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53) [ ![ai visualization](https://wimlaw.com/media/yootheme/cache/45/milad-fakurian-5yWtM3M3JKM-unsplash-45306e6d.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)### [Suggestions on Use of AI](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) Perhaps the starting point is to look at the type of AI platforms generally available. At a recent conference about AI use for HR, speaker… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53) [ ![june 2026 legal immigration webinar promo graphic](https://wimlaw.com/media/yootheme/cache/45/june-2026-webinar-immigration-453d45bc.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)### [Worksite Enforcement and TPS and Parole Status Update](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221) [Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221) The webinar covers how to deal with a worksite enforcement action and various types of immigration enforcement activities. The webinar also… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221) ### Additional Legal Resources [### Newsletter Explore ](https://wimlaw.com/publications/newsletters) [### Books Explore ](https://wimlaw.com/publications/books) [### Alerts Explore ](https://wimlaw.com/alerts) [### Articles Explore ](https://wimlaw.com/articles) [### Audits Explore ](https://wimlaw.com/audits) [### Events Explore ](https://wimlaw.com/events) ## Schema ```json { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://wimlaw.com" }, { "@type": "ListItem", "position": 2, "name": "Articles", "item": "https://wimlaw.com/articles" }, { "@type": "ListItem", "position": 3, "name": "So You Want to Hire an Unpaid Intern: The Department of Labor Has Some New Guidelines", "item": "https://wimlaw.com/articles/so-you-want-to-hire-an-unpaid-intern-the-department-of-labor-has-some-new-guidelines" } ] } ```