Got Interns ? Since 2010, the U.S. Department of Labor (DOL) has used a six-factor test to determine whether an unpaid intern, working for a private sector, for profit employer can be properly classified as an unpaid intern. Not surprisingly, perhaps federal courts have failed to follow that test, finding it too rigid and inflexible.
On January 5th, the DOL issued a Field Assistance Bulletin announcing that it was rescinding Fact Sheet #71 published in April 2010. DOL will now follow a 7-factor test that focuses on who is the primary beneficiary of the internship. If it is the student, then working unpaid is permissible; if it is the employer who benefits most, the internship should be paid. The DOL describes this new test as more flexible. WOW !
DOL Opinion Letters Return ! On January 5th, the DOL issued 17 Opinion Letters . The 17 letters address a variety of issues including bonuses, exempt classification for certain workers, and wage deductions from exempt employees' wages. For example, employers often have questions about if and how they should deduct from an exempt employee's wages for certain absences. In one of the letters, the DOL writes,"...if an [exempt] employee is absent for one or more full days, but does not have enough time in his or her leave bank to cover the entire absence, the employer may make a deduction from the employee’s pay for any portion of the full-day absences that is not accounted for by the leave bank." WOW !
Originally published on Five L Company blog.