http://wdr.doleta.gov/directives/attach/TEGL/TEGL12-09acc.pdf1. 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;
2. The training is for the benefit of the trainees;
3. The trainees do not displace regular employees, but work under their close
observation;
4. 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;
5. The trainees are not necessarily entitled to a job at the conclusion of the training
period; and
6. The employer and the trainees understand that the trainees are not entitled to
wages for the time spent in training.
If all of the factors listed above are met, then the worker is a “trainee”, an employment
relationship does not exist under the FLSA, and the FLSA’s minimum wage and overtime
provisions do not apply to the worker. Because the FLSA’s definition of “employee” is
broad, the excluded category of “trainee” is necessarily quite narrow. Moreover, the fact
that an employer labels a worker as a trainee and the worker’s activities as training and/or
a state unemployment compensation program develops what it calls a training program
and describes the unemployed workers who participate as trainees does not make the
worker a trainee for purposes of the FLSA unless the six factors are met. Some of the six
factors are discussed in more detail below.