Employee, Volunteer, or Neither? Proposing a Tax-Based Exception to FLSA Wage Requirements for Nonprofit Interns After Glatt v. Fox Searchlight

By: Jane Pryjmak

92 Wash. L. Rev 1071

June, 2017

            In Glatt v. Fox Searchlight, the second circuit ruled that for purposes of for-profit organizations, interns were employees if the employer received the “primary benefit” from the relationship. This means that for-profit organizations are required to pay interns a fair wage. The Fox Searchlight case did not address the issue of unpaid nonprofit internships. There is debate on whether nonprofits are or should be exempt from this definition. Some scholars believe that the second circuit’s logic extends to nonprofits resulting in them not being exempt for public policy reasons. In her article, Jane Pryjmak, argues that certain nonprofits should be exempt in regards to the internships depending on the nonprofit’s budget the role the play in society. She proposes three exceptions: “one for interns supporting exempt purpose activities; another for interns working at organizations classified as public charities; and the last for interns at small nonprofits, as determined by their annual tax filing.” To read more about her interesting proposal click here: https://digital.law.washington.edu/dspace-law/bitstream/handle/1773.1/1694/92WLR1071.pdf?sequence=1&isAllowed=y

 

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