The Dangers of Unpaid Internships … for Employers
When I went back to school to get my bachelor’s degree in journalism, I did two internships – both unpaid. Of course, I also had a full-time job so pay wasn’t a key factor for me. What was important, though, was getting practical writing experience, which I did. At the time, I had no idea that there are labor laws governing unpaid internships. Fortunately, I didn’t need them, but not all interns are so lucky. There are some experts who encourage students to do unpaid internships, while others say, “students beware.” In the article, Stiffing Interns on a Paycheck Could Cost in the End on Workforce.com, it’s employers who are being warned.
There are a total of six criteria outlined by the U.S. Department of Labor that all employers offering unpaid internships must meet:
- 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 trainee;
- The trainees do not displace regular employees, but work under close observation;
- The employer that provides the training derives no immediate advantage from the activities of the trainees and on occasion the employer’s operations may actually be impeded;
- The trainees are not necessarily entitled to a job at the completion of the training period; and
- The employer and the trainee understand that the trainees are not entitled to wages for the time spent in training.
Usually, the article states, most unhappy interns are the ones who aren’t paid, and now that the economy is in a downturn, they are more likely to report violations than they would if the economy were booming.
According to the National Association of Colleges and Employers, over 98 percent of internships are paid, but there are still a few employers who, in an effort to cut costs, are offering unpaid internships that are usually part of a college program that will give the students course credit in lieu of pay.
It’s not a good idea for employers to take advantage of unpaid interns because not only will they return to campus and tell anyone who will listen, they will also make use of sites like InternshipRatings.com and pretty much ruin an employer’s chances of finding someone else willing to accept his internship offer.
Just as employers are offering unpaid internships because the recession has caused them to cut back on expenses wherever possible, so are interns trying to avoid unpaid internships because they need the money more than ever before.
Employers who want to continue to attract the highest quality students for internships are advised to either make sure their internship programs meet the Department of Labor’s six criteria or, at the very least, offer to pay minimum wage.
