The U.S. Supreme Court has held that the words "to suffer or permit to work," as used in the Fair Labor Standards Act (FLSA) to define "employ," do not make all workers employees. For example, workers who work for their own advantage on the premises of another without any express or implied compensation agreement are not employees under the FLSA.

Whether trainees or students are employees of an employer under the FLSA will depend upon all of the circumstances surrounding their activities on the premises of the employer. If all of the following criteria apply, the trainees or students are not employees within the meaning of the FLSA:

• The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school;

• The training is for the benefit of the trainees or students;

• The trainees or students do not displace regular employees, but work under close supervision;

• The employer that provides the training receives no immediate advantage from the activities of the trainees or students and, on occasion, his operations may even be impeded;

• The trainees or students are not necessarily entitled to a job at the conclusion of the training period; and

• The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.

In Maryland, as in other states, the definition of 'employ' under the Fair Labor Standards Act (FLSA) is informed by the U.S. Supreme Court's interpretation that not all workers are employees. Specifically, the Court has clarified that the phrase 'to suffer or permit to work' does not automatically confer employee status, particularly when there is no compensation agreement. This is relevant for trainees or students who may be present on the premises of a business. Under the FLSA, trainees or students are not considered employees if they meet certain criteria, which include the training being similar to that provided in a vocational school, the training being primarily for the benefit of the trainees, and the trainees not displacing regular employees. Additionally, the employer should not gain immediate advantage from the trainees' activities, there should be no guarantee of a job post-training, and there should be a mutual understanding that the trainees are not entitled to wages during the training period. Maryland employers must adhere to these federal guidelines to determine whether individuals in training capacities are considered employees under the FLSA.