January 8, 2018 / 9:14 PM / 10 months ago

DOL pulls back Obama-era guidance on payment for interns

The U.S. Department of Labor has rescinded guidance issued during the Obama administration that had created a new test under federal law for determining when interns must be paid, after several appeals courts rejected its approach.

The department’s Wage and Hour Division on Friday said it was adopting a standard endorsed by appeals courts that asks whether the “primary beneficiary” of an internship is the employer or the intern in order to determine whether interns are owed minimum wage and overtime pay under the Fair Labor Standards Act.

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