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 Arizona, as in all states, the Fair Labor Standards Act (FLSA) is a federal law that sets standards for wages, overtime pay, and youth employment. The U.S. Supreme Court has clarified that not all workers are considered employees under the FLSA. Specifically, the Court has indicated that the phrase 'to suffer or permit to work' does not extend employee status to individuals such as trainees or students working for their own benefit without a compensation agreement. In determining whether trainees or students are employees under the FLSA, all circumstances of their activities with the employer are considered. The six criteria listed, including the nature of the training and the lack of displacement of regular employees, help to determine the status of trainees or students. If all these criteria are met, trainees or students are generally not regarded as employees and are not entitled to minimum wage or overtime under the FLSA. It's important to note that while the FLSA provides the federal framework, Arizona may have its own labor laws that could provide additional protections or standards for workers. However, these state laws cannot provide less protection than the FLSA.