Hacker News Reader

Illegal in all states. This arrangement fails several of the prongs of the Fair Labor Standards Act's "primary beneficiary test", particularly the "conducted without entitlement to a paid job" test, as the "fellowship" is clearly being undertaken with the hope of receiving a full-time job.

https://www.dol.gov/agencies/whd/fact-sheets/71-flsa-interns...

View on HN

> he "conducted without entitlement to a paid job" test, as the "fellowship" is clearly being undertaken with the hope of receiving a full-time job.

"A hope of X" and "entitlement to X" are not the same thing. I tend to agree that this is likely illegal, but it seems to have been very carefully crafted to have at least a superficially-plausible argument for compatibility with the primary beneficiary test. I don't think it was done in ignorance of the law, but a careful and deliberate attempt to hack around it.

Isn't this the new playbook for startups? Break the law but acquire enough resources to change the law. Then lobby like there is no tomorrow in an attempt to change the laws again to stifle your competition?

Reply on news.ycombinator.com