What Is The Primary Beneficiary Test For Unpaid Interns?

An unpaid internship can be a great opportunity that is mutually beneficial for both the intern and the employer. It will give the intern valuable resume experience, which can benefit him or her significantly and help them get their career off the ground.

There are guidelines that must be followed, though. The employer cannot take what would have otherwise been a paid job role then change the title to get free work.

It cannot be used to change the title to intern and then exploit free labor. There is a test that is available to determine the legality of an unpaid internship and to make sure that the employer is not taking advantage of the intern.

If you are an intern, but you have been switched into a role that should be a paid position, you do have rights and there is recourse available.

You should maintain supporting evidence and documentation then determine the best way to proceed with your claim against the employer.

Be sure to maintain a paper trail that shows everything that transpired, what you were promised, and what happened. You should not let the employer get by with mistreating you and taking advantage of your abilities and services.

You do have legal resources available to help you, and if you have any questions or concerns, you should speak with an employment law attorney.

The Internship Test To Determine Legality Of The Internship Role

Courts use the primary beneficiary test to determine if an intern or a student is considered an employee according to the Fair Labor Standards Act (FLSA).

The test involves the court examining the economic reality of the relationship between the intern and the employer to determine which of those two parties is the primary beneficiary of the relationship.

There are seven factors that apply to the internship test –

  • The extent to which the employer and the intern understand that there is not an expectation of being compensated. If there is a promise of payment, either implied or expressed, it suggests that the intern is an employee of the company.
  • To the extent at which the internship provides the intern with training that is like what would be received in an educational environment, including hands-on training like educational facilities provide.
  • The extent to which the internship is tied to the formal education program through integrated coursework or academic credit.
  • The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic year.
  • The extent to which the internship’s duration is limited to the period to which the intern receives beneficial learning and skills.
  • The extent to which the work of the intern complements – and does not displace – the work of paid employees while the intern gets significant educational benefits.
  • The extent to which the intern and the employer understand the internship is conducted without entitlement to a paid job at the internship’s conclusion.

You should maintain documents and evidence that the court could review to see if these situations apply and if it were an internship or if you should be classified as an employee of the company. Evidence is essential to the success of your claim.

Get a Free Case Evaluation

If you believe your rights are being violated, you should enlist the help of an employment law attorney who is familiar with internships and different aspects of employment law.

If it was implied that you would be paid for your services, or if your internship has become more of a job than a learning experience, you may have legal rights that allow you to seek recourse.

An attorney will review your evidence and documentation, determine the best way to proceed with your claim, and then work to ensure you are treated fairly and that your rights are protected.

Employment law attorneys offer different payment programs. Some lawyers require clients to pay a retainer upfront, but others take cases on a contingency basis and are not paid until the claim has been won and you recover compensation for your damages.

You do have a limited time to pursue a claim against an employer in such situations. Different states have varying statutes of limitations.

To make sure your claim is underway before time runs out, share the details of your situation with an employment law attorney in your area. Complete the Free Case Evaluation Form on this page to share the details of your situation with an attorney who handles such claims in your area.

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