I promise, this article will be shorter with a chuckle nearly guaranteed and a smile even more so.
The 2nd Circuit Court of Appeals (covering NY, VT & CT) recently decided for the first time in its history, "under what circumstances an unpaid intern must be deemed an 'employee' under the FLSA and therefore compensated for his work." First it looked to the law itself and found, "The FLSA unhelpfully defines 'employee' as an 'individual employed by an employer.'"
Next it considered the position of the US Department of Labor (DOL), which had chimed in and reminded the court of its six-factor test. (Fact Sheet #71) The test, which has been in place since 1967, requires that all six factors must be met in order for a worker to be properly classified as an unpaid intern. The DOL urged the court to give its views on employee status deference because it is the agency charged with administering the FLSA.
The court responded, "We decline DOL's invitation to defer to the test...an agency has no special competence or role in interpreting a judicial decision...the test is too rigid...we do not find it persuasive, and we will not defer to it." (Oh, excuse me - was I smiling? It's like kids in a sandbox, no?)
Instead the court derived its own 7-factor test for which "every factor need not point in the same direction to conclude that the intern is not an employee...our approach better reflects the role of internships in today's economy than the DOL factors, which were derived from a 68-year old Supreme Court decision..."
The case was remanded to the district court for reconsideration. Stay tuned!
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