Most “Internships” Are Really Illegal Unpaid Jobs — Are you an unpaid summer intern?

The Fair Labor Standards Act requires a minimum wage to be paid to be all employees to provide services for employers. Many companies hire unpaid interns, especially during the summer, to provide what is essentially free work for the company. In many cases, this is illegal and the unpaid intern is actually entitled to compensation.
The employer must show that all of the following criteria are satisfied for the employer to treat the intern as an “intern” and not as an employee:
1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under close supervision of existing staff;
4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
If you or your child is an unpaid intern, Sarelson Law Firm is available for a consultation. Employers should not take advantage of students by calling work an internship.