"The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or academic educational instruction." Work done by the intern must be for his or her explicit training in order to pass this test, and must not be structured for the profit of the business that provides the training.
"The training is for the benefit of the trainees." Examples of intern benefits include training in a task for which the intern has little or no experience, or performing a task for which the intern is experienced in order to improve skill level and increase knowledge.
"The trainees do not displace regular employees, but work under their close observation." An employer who assigns a job to an intern that relieves a regular employee of his or her duties, without also requiring the employee to closely observe the work of the trainee, would fail this criterion for an unpaid internship.
"The employer that provides the training derives no immediate advantage from the activities of the trainees, and on occasion, the employer's operations may actually be impeded." However, some benefit may be derived. According to the San Diego Mesa College Web site, past rulings of the Department of Labor have upheld that, for employers receiving some benefit from unpaid internships, the student is not an employee if the internship is part of an academic program and the work is for the student's benefit. For this reason, many businesses offering internships require that the student receive course credit for the internship.
"The trainees are not necessarily entitled to a job at the conclusion of the training period." Any agreement between employer and intern establishing the promise of a job after the internship period would cause the employer to fail this criterion for an unpaid internship.
"The employer and the trainees understand that the trainees are not entitled to wages for the time spent in training." This test often motivates employers to require interns to sign a statement saying they understand that they will not be paid for work done during their internship.