Legislative Changes Regarding Interns

​As of January 2018, the U.S. Department of Labor (DOL) announced it will now use the primary beneficiary test” to determine whether an intern must be paid. This change will end the 6-part test the DOL adopted in 2010 that required all factors weigh in favor of the employer.

The primary beneficiary test is a 7-factor balancing test that measures whether the student/intern or employer is the primary beneficiary of the employer-intern relationship.  If the intern/student is the primary beneficiary, he or she is not an employee and need not be paid. If the employer is the primary beneficiary, the student/intern is an employee and must be paid. To determine which party is the primary beneficiary, employers must examine the “economic reality” of the relationship using the 7 factors:

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