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 Oregon, as in the rest of the United States, the Fair Labor Standards Act (FLSA) is the federal law that defines what constitutes an 'employee.' According to the U.S. Supreme Court, not all workers are considered employees under the FLSA. Specifically, the Act's use of the phrase 'to suffer or permit to work' does not automatically classify all workers as employees. For instance, individuals who work on someone else's premises for their own benefit without a compensation agreement are not considered employees under the FLSA. When it comes to trainees or students, their status as employees under the FLSA depends on the circumstances of their activities at the employer's location. If the six criteria listed—such as the training being similar to vocational school, for the benefit of the trainees, and not providing immediate advantage to the employer—are met, then the trainees or students are not considered employees under the FLSA. This means they are not entitled to minimum wage or overtime under federal law. Oregon state law generally aligns with federal law in this regard, but it is always advisable to consult with an attorney for specific situations to ensure compliance with all applicable regulations.