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On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

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Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

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Labor Talk Blog: Are Unpaid Summer Internships on Their Way Out?

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June 24, 2014

Summer is officially here, which for many employers, is the season of unpaid internships. What was once seen as an opportunity for students to get "real-world" work experience during summer break has in recent years become a hotly contested issue. Unpaid intern lawsuits have swept the nation and the U.S. Department of Labor ("DOL") has taken a firm stance on the topic.

So, what's the buzz about? Generally, the FLSA requires that "employees" be paid at least minimum wage and receive overtime compensation for all hours worked over 40 in a workweek. The DOL argues that many summer interns are actually "employees," and therefore, should be paid as such. The burden is on the employer to analyze its internship opportunities to determine whether the interns qualify as employees under the FLSA. Unfortunately, the analysis is multi-factored and the conclusion is not always clear.

The DOL takes the position that if ALL six of the factors below are satisfied, the intern is NOT an employee and the internship may be unpaid.

  1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment.
  2. The internship is for the benefit of the intern.
  3. The intern works under close staff supervision and does not displace regular employees.
  4. The employer derives no immediate advantage from and may in fact be impeded by the intern.
  5. The intern is not necessarily entitled to a job after the internship.
  6. The employer and the intern understand that the intern is not entitled to wages.

If the factors above are not satisfied, the intern is an employee in the eyes of the DOL, and must be paid at least minimum wage and time and a half for all hours worked over 40 in a workweek. For an employer, this may mean turning an unpaid internship into a paid internship, or increasing the pay of a low-paying internship to ensure compliance with minimum wage and overtime requirements.

Note, however, that the DOL makes an exception for unpaid internships in the public sector and for non-profit charitable organizations. If the intern volunteers his or her time without expectation of compensation, the DOL generally permits the internship to be unpaid.

If you have questions or concerns regarding your summer internship program, our attorneys are prepared to answer your questions and/or assist in analyzing your program for FLSA compliance.

For more Labor and Employment information, visit www.BassBerryLaborTalk.com.


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