Introduction to the Fair Labor Standards Act (FLSA)

D. T RAINEES Trainees are excluded from FLSA coverage. Whereas employees perform work for the benefit of their employer, trainees receive training primarily for the benefit of themselves in that the training enables trainees to become employees. 32 To evaluate whether an individual is performing as a trainee versus employee, Courts have developed seven non-exhaustive factors to examine the economic reality of the training relationship:

 The trainee and employer must mutually understand that there is no expectation of compensation;  The training provided must be similar to that provided in an educational environment, including vocational or clinical training environments;  Whether the training is tied to a formal education program via integrated coursework or academic credit;

 Whether the training corresponds with the trainee’s academic calendar;

 Whether the duration of the training is limited to the training period;

 Whether the trainee displaces paid employees or complements the work of paid employees while beneficial training is received;  The trainee is not necessarily entitled to a job at the completion of the training period (this is a critical factor). 33

If, using the above factors, the totality of circumstances indicates that the relationship between the trainee and the employer is primarily for the benefit of the trainee, the trainee has been properly designated as such and is excluded from the FLSA.

While wages may not be paid to trainees, nominal expenses are permissible as long as they do not exceed a reasonable approximation of the expenses incurred by the trainees. 34

E. V OLUNTEERS The FLSA expressly excludes volunteers from the definition of employees covered by the Act. 35 A “volunteer” is defined as an individual who performs service for a public agency for civic, charitable, or humanitarian reasons, without promise, expectation or receipt of compensation. 36 The two key requirements for volunteer status are: (1) the volunteer must not be compensated; and (2) the volunteer must not be employed to perform similar services for the same public agency. The Act permits entities to pay volunteers their expenses, reasonable benefits, and a nominal fee. 37

Introduction to the Fair Labor Standards Act (FLSA) ©2020 (s) Liebert Cassidy Whitmore 13