May I hire a person as an unpaid intern?

The U.S. Department of Labor (DOL) has adopted seven criteria to determine if an individual can be classified as an unpaid intern and not an employee, known as the "primary beneficiary test." This test looks at the "economic reality" of the intern-employer relationship to determine which party is the relationship's primary beneficiary — the employer or the individual. This test has also been applied in California to determine if the workers are subject to California's wage and hour protections.

The seven factors to consider are the extent to which the:

• Intern and the employer clearly understand that there is no expectation of compensation.