Stipends, which are typically paid to an individual to help cover housing and other living expenses, may only be paid to non-employees. Conversely, a wage may only be paid to employees.  If your internship or fellowship satisfies the “primary beneficiary” test by primarily benefiting you, rather than the employer, you may receive a stipend. However, if the internship or fellowship provides more of a benefit to the employer, then you may be considered an employee who is entitled to minimum wage and overtime pay.  Distinguishing between a stipend and a wage is important because the amount of a stipend may be lower than minimum wage. Furthermore, your taxes may not be withheld from a stipend.