Worthy Exemption? Examining How the DOL Should Apply the FLSA to Unpaid Interns at Nonprofits and Public Agencies

Abstract:     
The Department of Labor (“DOL”) has recently increased its enforcement of the Fair Labor Standards Act (“FLSA”) against for-profit organizations that use unpaid-intern labor by using a six-part test to determine employment status. This recent effort explicitly excludes nonprofits and public agencies, even though the FLSA provides no clear exemption for these types of organizations. However, competing public-policy concerns might require that the DOL develop a different test to determine employee status under the FLSA. Policymakers must be cognizant of both the positive and negative aspects of unpaid internships. For instance, they help young workers establish a career path and assist nonprofits and public agencies in providing services. Yet unpaid internships can also lead to harmful economic effects and stifle social mobility. This Note takes these considerations into account in proposing a solution that aims to combat the ills of the intern economy while protecting the public’s need of nonprofit and public sector services.

Number of Pages in PDF File: 49

Keywords: Employment Law, Wage and Hour, Internships, Nonprofit, Public Agency

JEL Classification: L30, K31, K30

Accepted Paper Series