Unpaid internships have become increasingly common in recent years, with many employers offering them as a way to gain experience and build skills. However, there are a number of legal requirements that must be met in order for an unpaid internship to be considered legal.
The Fair Labor Standards Act (FLSA)
The FLSA is the primary federal law that governs the payment of wages to employees. The FLSA defines an employee as “any individual employed by an employer.” This definition is broad and includes unpaid interns.
In order to be considered an employee under the FLSA, an individual must meet the following criteria:
- They must be supervised by the employer.
- They must perform work for the employer.
- They must be an integral part of the employer’s business.
If an unpaid intern meets these criteria, they are entitled to be paid the minimum wage.
Exceptions to the FLSA
There are a few exceptions to the FLSA’s requirement that unpaid interns be paid the minimum wage. These exceptions include:
- Unpaid internships that are part of an educational program. These internships are typically offered by schools and universities as part of a degree program.
- Unpaid internships that are for the benefit of the intern. These internships are typically offered by non-profit organizations and provide the intern with valuable experience and training.
- Unpaid internships that are short-term. These internships are typically less than 12 weeks in duration.
State Laws
In addition to the FLSA, there are a number of state laws that govern the payment of wages to unpaid interns. These laws vary from state to state, but they generally require that unpaid interns be paid the minimum wage if they meet the criteria for an employee under the FLSA.
How to Determine if an Unpaid Internship is Legal
If you are considering taking an unpaid internship, it is important to make sure that the internship is legal. You can do this by asking the employer the following questions:
- Are you required to work a certain number of hours per week?
- Are you supervised by an employee of the company?
- Do you perform work that is essential to the company’s business?
If you answer yes to all of these questions, you are likely an employee under the FLSA and are entitled to be paid the minimum wage.
Consequences of Violating the FLSA
Employers who violate the FLSA by failing to pay their unpaid interns the minimum wage may be subject to a number of penalties, including:
- Back pay: The employer may be required to pay the intern the minimum wage for all hours worked.
- Damages: The intern may be entitled to damages equal to the amount of back pay owed, plus interest.
- Attorney’s fees: The intern may be entitled to attorney’s fees if they prevail in a lawsuit against the employer.
Tips for Employers
If you are considering offering an unpaid internship, it is important to make sure that the internship is legal. You can do this by following these tips:
- Make sure that the intern is not an employee under the FLSA. You can do this by asking the intern the questions listed above.
- If the intern is an employee, pay them the minimum wage.
- If the intern is not an employee, make sure that the internship is for the benefit of the intern. This means that the intern should be gaining valuable experience and training.
- Limit the duration of the internship. Short-term internships are less likely to be considered employment.
Tips for Interns
If you are considering taking an unpaid internship, it is important to make sure that the internship is legal. You can do this by asking the employer the questions listed above.
If you are not sure whether or not the internship is legal, you can contact the Wage and Hour Division of the U.S. Department of Labor.
Unpaid internships can be a great way to gain experience and build skills. However, it is important to make sure that the internship is legal before you start working.
Frequently Asked Questions
Q: What is the difference between an unpaid internship and an employee?
A: An unpaid intern is typically someone who is not paid for their work. They may be gaining experience and training, but they are not an employee of the company. An employee is someone who is paid for their work and who is supervised by an employer.
Q: What are the benefits of unpaid internships?
A: Unpaid internships can provide interns with valuable experience and training. They can also help interns build their network and make connections in their field.
Q: What are the risks of unpaid internships?
A: Unpaid internships can be risky if they are not legal. If an unpaid intern is considered to be an employee under the FLSA, the employer may be required to pay the intern the minimum wage. Additionally, unpaid interns may not be covered by workers’ compensation insurance.
Q: How can I find out if an unpaid internship is legal?
A: You can ask the employer the questions listed above. You can also contact the Wage and Hour Division of the U.S. Department of Labor.
Conclusion
Unpaid internships can be a great way to gain experience and build skills. However, it is important to make sure that the internship is legal before you start working. By following the tips in this article, you can help ensure that your unpaid internship is a positive and rewarding experience.
Additional Resources
- Wage and Hour Division of the U.S. Department of Labor
- National Labor Relations Board
- American Bar Association