At least one federal appellate court thinks they could be and to reach that decision new law has been created.

In Schumann v. Collier Anesthesia, P.C. the United States Court of Appeal for the Eleventh Circuit vacated and remanded an appeal from the United States District Court for the Middle District of Florida. The Appellate Court ruled that 25 former students in a nursing master’s degree curriculum whose training included participation in a clinical program could proceed with their collective action claims and that they are entitled to wages and overtime under the Fair Labor Standards Act (FLSA). The internship was a legal
pre-requisite to the degree under Florida law. The students sued the College and the employers who provided the internship.

The Appellate Court decided it was improper for the College and employers to rely on the Labor Department’s guidance in its Field Operations Handbook. It distinguished prior cases where it was held that if the “primary beneficiary” was the student from the internship the
employment was excepted from regulation under the FLSA. In doing so it held that the “primary beneficiary” test is merely a way to view the “economic reality of the situation,” and characterized the issue:

“So our dilemma arises in determining how to discern the primary beneficiary in a relationship where both the intern and the employer may obtain significant benefits. We think that the best way to do this is to focus on the benefits to the student while still considering whether the manner in which the employer implements the internship program takes unfair advantage of or is otherwise abusive towards the student.”

The Appellate Court found this required a “weighing and balancing [of] all of the circumstances,” and that the result was not necessarily “all or nothing” as the beneficiary of a portion of the work may be solely for the employer.

In day to day practice, the case serves as a reminder that student interns should be treated as interns. They should not being assigned unrelated activity (such as washing executive’s cars, delivery services, painting the property (unless, of course, their internship is as a painter or contractor), picking up trash, chauffeur children to events, etc.) to their internship.

If you are unsure whether an assignment to an intern may not be directly related to the subject matter of the internship, consult legal counsel or pay the student intern as an employee for such work.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.