• The New School's Center for Career Development follows the internship criteria outlined by the Fair Labor Standards Act (FLSA).

    Courts have used the “primary beneficiary test” to determine whether an intern or student is in fact an employee under the FLSA. This test allows courts to examine the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship. Courts have established the following seven factors as part of the test:

    1. The extent to which the intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee—and vice versa.
    2. The extent to which the internship provides training similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions.
    3. The extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit.
    4. The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic calendar.
    5. The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning.
    6. The extent to which the intern’s work complements, rather than replaces, the work of paid employees while providing significant educational benefits to the intern.
    7. The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship.

    Courts have described the primary beneficiary test as a flexible test; no single factor is determinative. Accordingly, whether an intern or student is an employee under the FLSA necessarily depends on the unique circumstances of each case.

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    Undergraduate Career Services
    72 Fifth Avenue, 5th floor
    New York, NY 10011

    212.229.1324
    [email protected]

    Center for Graduate Career & Professional Development
    72 Fifth Avenue, 5th floor
    New York, NY 10011

    212.229.5400 x1518
    [email protected]

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