Recently, the U.S. Department of Labor (DOL) announced that it was rescinding a guidance document on paying interns it issued in 2010. The former guidance suggested that employers need to apply a six-factor test to determine whether an intern must be paid.
However, the test has been rejected by several appellate courts throughout the country, causing the DOL to rethink its approach. The agency is now advocating for the “primary beneficiary test” that several courts have used. A recent high-profile case illustrates how the primary beneficiary test applies to internships.