preview

Fair Labor Standards Act (FLSA)

Better Essays
Open Document

Whether the Fair Labor Standards Act (FLSA) would require Wetherford & Associates, a for-profit advertising agency, to compensate an intern whose job duties will include researching into potential clients and media markets, ordering and organizing supplies, relieving the receptionist as necessary, and taking phone messages. Furthermore, whether any combination of proposed job duties would permit the Agency to hire the intern in an unpaid capacity.

BRIEF ANSWER
Wetherford will be able to offer the unpaid internship if they make sure the intern is the main beneficiary in the intern-employer relationship. The Eighth Circuit, which covers Missouri, has previously applied the primary beneficiary rule. Under the primary beneficiary rule, Wetherford …show more content…

Louis, Missouri. It employs approximately 50 employees and bills in excess of $15,000,000 per year. Recently, a college graduate who holds a degree in journalism approached their director and asked if he could do an internship at Wetherford & Associates. He understands that it would be unpaid, but he sees it as an opportunity to learn the advertising business in a practical, hands-on way from professionals already working in the field. It is not an uncommon work experience in this economy.

Wetherford has not had interns in the past and has no formal organized internship program. The director of the agency would like for the intern to do research into potential clients and media markets, order and organize supplies, relieve the receptionist as necessary, and take phone messages. Also, the intern could assist the creative team in preparing storyboards and other materials for client presentations and might be able to observe the team making a pitch for new business to potential clients. …show more content…

Currently, there are no statutory or regulatory guidelines specifically designated for the consideration of the relationship between an employer and an intern. Even when courts have not been consistent in applying the FLSA six-factor test or Walling v. Portland Terminal Co., our client will be able to offer the unpaid internship by acting in good faith, having in place an unpaid internship letter and signing an arbitration agreement.

The FLSA’s six-factor test has provided a guidance to determine whether an intern or trainee is entitled to minimum wage and overtime compensation under the FLSA for services he provides to a for-profit employer. The factors are:
1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under close supervision of existing staff;
4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
5. The intern is not necessarily entitled to a job at the conclusion of the internship;

Get Access
Related
Get Access