LABOR DEPARTMENT NOW SUPPORTS UNPAID INTERNSHIPS

On January 5, 2018, the U.S. Department of Labor set forth new guidelines establishing a "primary beneficiary test" for the legality of unpaid internships.  Seven factors will be used to determine whether the internship meets the standard, including whether training is provided that "would be similar to that which would be given in an educational environment."  Another standard indicates the job should complement, not displace, paid workers employees.  The new test is generally considered to be easier for companies to meet than the old test, including the fact that the old test prohibited employers from deriving "immediate advantage from the activities of the intern."