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Home > Unpaid Internships Under Legal Scrutiny

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Unpaid Internships Under Legal Scrutiny

January 4, 2013

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Moreover, employers should document the terms and conditions of the unpaid internship at the outset so that student-trainee expectations line up with the program's objectives. The duration of an internship is also an important factor. Employers should be careful to limit unpaid internships to a defined period like a summer or an academic term. Employers should also issue internal guidelines and train managers to be sensitive to the legal requirements for an unpaid internship. Under the present Labor Department approach, benefit to the employer may be determinative.

To satisfy Labor Department concerns, managers should be reminded that unpaid interns will be joining their department to learn and not as much to supplement the regular work force. Narrow production work, which requires limited discretion and repetitive tasks, may be a legitimate part of the learning experience, but assignments given to unpaid interns need to be something more than just menial tasks. Managers who will interact with unpaid interns on a daily basis should think of ways to enhance the interns' experience by providing unpaid interns with general skills that are transferable to any employer in the field.

Conclusion

Unpaid internships can provide valuable door-opening and skill-enhancing opportunities for students and recent graduates, but such programs must be carefully designed to avoid legal pitfalls, especially in view of the increasing scrutiny of the federal and state labor departments and the emergence of a number of private collective or class action lawsuits.

Samuel Estreicher is the Dwight D. Opperman Professor of Law at New York University School of Law and of counsel to Paul Hastings. Allan S. Bloom is a partner at Paul Hastings and co-chair of the firm's employment law department in New York. Lauren B. Palais , an associate at the firm, assisted in the preparation of this article.

Endnotes:

1. 29 U.S.C. §203(e)(1).

2. 29 U.S.C. §203(g).

3. Tony & Susan Alamo Found. v. Sec'y of Labor, 471 U.S. 290, 295 (1985).

4. Walling v. Portland Terminal Co., 330 U.S. 148, 152-53 (1947).

5. Id. at 152 (holding that the FLSA "was not intended to penalize railroads for providing, free of charge, the same kind of instruction at a place and in a manner which would most greatly benefit the trainees").

6. U.S. Department of Labor, Wage and Hour Division, "Fact Sheet #71: Internship Programs Under the Fair Labor Standards Act" (April 2010), http://www.dol.gov/whd/regs/compliance/whdfs71.pdf.

7. Id. (emphasis added).

8. The New York State Department of Labor adds five additional criteria to the federal agency's six-factor test to determine whether interns must be paid minimum wage and overtime under New York law. See New York State Department of Labor, "Fact Sheet: Wage Requirements for Interns in For-Profit Businesses" (April 2011), http://www.labor.ny.gov/formsdocs/wp/P725.pdf.

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  • modern day slave

    April 21, 2013 05:59 PM

    I moved to NYC 4 months ago much like every cliche video clip of a girl chasing her dream. What I found was much similar to those same movie plots minus the happy ending of landing a job.

    In short, I am interning for a famous photographer in Manhattan. The shortest day I've worked in the last 4months was probably 9hrs. Averaging no less than 50hrs per week of what I would conclude is mostly if not totally unrelated to my field. Yes I am interning for a photographer BUT I am running to get food for the set, cleaning up after everyone, walking the dog during business hours and later when others have gone out to celebrate the shoot, shredded boxes of old clippings, running errands, dishes,etc. No breaks. No lunches. Most times I have to sneak food in when everyone is too busy to notice. The atmosphere is completely unhealthy and barely tolerable for a paid position. After 12 weeks I've only had one meeting with my supervisor and it was not to assess my work, progress, or portfolio. I feel robbed and like a piece of gum on the bottom of someone's shoe and there is ZERO chance of being placed or referred out to someone. Not only have I missed out on making money for myself, I've spent every penny I could save, beg for, or borrow to stay here and watch this person make hundreds of thousands of dollars without so much as a thank you. As I have already graduated, this was not for college credit either.

    Any help?

  • modern day slave

    April 21, 2013 05:59 PM

    I moved to NYC 4 months ago much like every cliche video clip of a girl chasing her dream. What I found was much similar to those same movie plots minus the happy ending of landing a job.

    In short, I am interning for a famous photographer in Manhattan. The shortest day I've worked in the last 4months was probably 9hrs. Averaging no less than 50hrs per week of what I would conclude is mostly if not totally unrelated to my field. Yes I am interning for a photographer BUT I am running to get food for the set, cleaning up after everyone, walking the dog during business hours and later when others have gone out to celebrate the shoot, shredded boxes of old clippings, running errands, dishes,etc. No breaks. No lunches. Most times I have to sneak food in when everyone is too busy to notice. The atmosphere is completely unhealthy and barely tolerable for a paid position. After 12 weeks I've only had one meeting with my supervisor and it was not to assess my work, progress, or portfolio. I feel robbed and like a piece of gum on the bottom of someone's shoe and there is ZERO chance of being placed or referred out to someone. Not only have I missed out on making money for myself, I've spent every penny I could save, beg for, or borrow to stay here and watch this person make hundreds of thousands of dollars without so much as a thank you. As I have already graduated, this was not for college credit either.

    Any help?

  • blb2144@aol.com

    January 04, 2013 05:44 AM

    I need to be able to print the document!!! There is no print facility

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