UNPAID INTERNSHIPS S

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A Case Against

SHOULD THE PRACTICE OF FOR-PROFIT COMPANIES

USING UNPAID INTERNS BE ILLEGAL?

Unpaid internships are rarely legal forms of

poorly policed exploitation that go

against commonly held American values and often offer no distinct

advantage to the participant.

Internships are short-term work experiences

that allow the intern to observe and

participate in professional work environments

and to explore how their interests relate to

possible careers. They can be paid or unpaid

and can qualify for college credit at many

institutions.

An Introduction to Internships

• Internships can be fun, valuable experiences

which pay you with training and academic credit

• They can lead to a job offer

within the company

• They are resume builders

that will help you land a job after graduation

COMMON ARGUMENTS IN FAVOR OF UNPAID

INTERNSHIPS

REBUTTAL:WAGES DO NOT TAKE AWAY FROM EXPERIENCE, AND TRAINING & ACADEMIC CREDIT ARE NOT

PAYMENTThe learning experience of an internship does

not exclusively occur when the participant is

not being paid a fair or minimum wage.

According to the Economic Policy Institute in

2010, many “top” business internships offered

“no explicit academic or training component,”

thereby invalidating the assertion that menial

tasks associated with interning constitute

training.

Furthermore, academic credit is given by

educational institutions, allowing the

businesses themselves to skirt the issue of

compensation. Internships can be fun while

exploiting you at the same time.

REBUTTAL:UNPAID INTERNSHIPS ARE LESS THAN HALF AS LIKELY TO YIELD A JOB OFFER

Paid Internships 36%

Unpaid Internships 17%

0 5 10152025303540

REBUTTAL:PAID INTERNS ARE MORE LIKELY TO FIND A

JOBAccording to a study by

the National Association of Colleges and Employment, graduates in 2013 with paid internships had a significantly better rate of hire (63%) compared to their peers who had unpaid internships (37%) or no internship experience at all (35%).

They also enjoyed a higher starting salary…

THOSE WHO TOOK UNPAID INTERNSHIPS HAD LOWER STARTING SALARIES THAN THOSE WITH NO INTERNSHIPS AT ALL

Paid

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Unpai

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$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

Average Starting Salary

EXPLOITATIONex·ploi·ta·tion [ek-sploi-tey-shuhn]noun1. the action or fact of treating someone

unfairly in order to benefit from their work.

"the exploitation of migrant workers"synonyms: taking advantage, misuse

• Entry-level jobs increasingly require experience,

emphasizing the importance of internships, yet the

majority of internships offered are unpaid. This sets

the stage for exploitation

• Prestigious unpaid internships and the inability to

participate in them are contributors to less

professional, social, and economic mobility

• With very few exceptions, unpaid work in the U.S. is

illegal for all people in all professions

FAIR LABOR STANDARDS ACTCRITERIA FOR UNPAID

INTERNSHIPS: It is similar to training which would be given

in an educational environment It is for the benefit of the intern; The intern does not displace regular

employees The employer derives no immediate

advantage from the activities of the intern, and on occasion its operations may actually be impeded

The intern is not necessarily entitled to a job at the conclusion of the internship

The employer and the intern understand that the intern is not entitled to wages

IN OTHER

WORDS:

unpaid internships should be educational experiences done at the labor of the employer

WHY THE LAW DOES NOT WORK:• LITTLE ENFORCEMENT After restating its policy on unpaid

internships in 2010, the Department of Labor cited only 11 for-profit companies for violations from 2010-2013

• INTERNS FEAR REPERCUSSIONS The DOL does not actively seek out violations and admits unpaid interns are hesitant to complain for fear of endangering their their career prospects and professional reputations

• PRIORITY OF IMMIGRANT EXPLOITATION IGNORES INTERNS The DOL’s focus is on “industries where historically we have found high

incidences of violations and where the most vulnerable workers are employed— industries such as construction, janitorial, agriculture, and restaurants.”

"If you're a for-profit employer or you want to pursue an internship with a for-profit employer, there aren't going to be many circumstances where you can have an internship and not be paid and still be in compliance with the law.

-Nancy Leppink, acting director DOL Wage and Hour division

• PURSUING LEGAL ACTION Time consuming & costly. In 2013, a Federal District Court judge in Manhattan ruled that Fox Searchlight interns were actually employees and should have been paid. The case in now in appeal.

Unpaid internships can only be

had by those who have the

resources to take them on

Industries such as fashion, media,

and art effectively shut out

students who do not have the

backing of wealthy families

Unpaid internships are not widely

possible for adults students, who

often have more familial and

financial responsibilities than

traditional-aged students “Using interns for free labor takes paid work opportunities

from applicants, contributing to unemployment and devaluing

the labor force.” –Laura Franta-Abdalla

PROTECTION BEYOND PAYNot paying interns as employees creates FLSA loopholes in areas beyond pay. “The lack of regulation around internships means that employers have little incentive to provide comfortable working conditions for their interns.”

–Forbes Moritz Erhardt, a 21 year old

Bank of America Merrill Lynch intern, died after working 72 hours straight.

A New York court ruled that an unpaid intern couldn't file harassment claims because she was not technically an employee and therefore not protected by New York City Human Rights Law.

“We are beyond children

working in coal mines. But

that's not because coal

executives have softened.

It's because of the labor

movement’s legislative

victories in the first half of

the 20th century, victories

that radically reshaped

the way Americans work

and think about work.”

-The New York Times

opinion piece “Let’s

Abolish This Modern-

Day Coal Mine”

An internship should be an invaluable learning experience.

When interns are used for unpaid labor, it becomes an exploitive experience for the intern and a disenfranchising experience for

those who cannot afford to participate. Laws in place do little

to help, and abuse of the law is enabled by the ability of for-profit

companies to offer unpaid internships. Ending them can

squash illegal use of interns, level the playing field, and nurture more

of the best young talent.

REFERENCE LINKSNational Association of Colleges and Employment U.S. Department of LaborColumbia UniversityThe Unpaid Intern, Legal or NotUnpaid interns not protected from sexual harassmentInternships Aren't Worth It -- Here's WhyThe 6 Best Arguments for Why Unpaid Internships Make Absolutely No SenseLet’s Abolish This Modern-Day Coal MineHow the Labor Department Has Let Companies Off the Hook for Unpaid InternshipsJudge Rules That Movie Studio Should Have Been Paying InternsUnpaid Internships: Elephant in the RoomDo Unpaid Internships Lead to Jobs? Not for College Students