Everything you need to know about unpaid internships.
Taking an internship is often the first step in building your career. It provides a unique opportunity to gain real-world experience, apply your academic knowledge, and expand your professional network. However, while many internships offer compensation, some organizations provide unpaid internships.
If you’re considering such an opportunity, this guide will help you navigate the legal aspects, benefits, and potential drawbacks of unpaid internships.
Are Internships Paid?
While most internships in the U.S. are paid, unpaid internships remain common, particularly among students. According to research by the National Association of Colleges and Employers (NACE), around 40% of internships are unpaid, disproportionately affecting women and Black students. Additionally, economic downturns often lead to companies scaling back paid internship programs, increasing the prevalence of unpaid opportunities.
Are Unpaid Internships Legal?
Unpaid internships are legal under U.S. labor law but must meet specific criteria to be compliant. The Fair Labor Standards Act (FLSA) of 1938 mandates that employees of for-profit companies must be paid. However, interns are not classified as employees under this law if they meet the “Primary Beneficiary Test.”
Primary Beneficiary Test
The U.S. Department of Labor uses this test to determine whether an intern should be considered an employee entitled to payment. The seven factors include:
- The intern understands that the internship is unpaid.
- The training provided is similar to what they would receive in an educational environment.
- The internship is connected to the intern’s academic program.
- The internship accommodates the intern’s academic schedule.
- The internship is for a limited duration, primarily focused on learning.
- The intern does not replace paid employees but complements their work.
- The intern is not entitled to a paid job at the conclusion of the internship.
Since no single factor is decisive, courts evaluate these factors collectively. The goal is to ensure that unpaid internships primarily benefit the intern rather than the employer.
State-Specific Regulations
Certain states have additional requirements for unpaid internships. For example, California mandates that employers submit internship proposals to the Division of Labor Standards Enforcement, while New York has additional legal stipulations.
Notable Legal Cases
Several court cases have shaped the legal landscape of unpaid internships:
- Glatt vs. Fox Searchlight Pictures (2015): The court ruled that unpaid interns working on a film production performed duties similar to paid employees, making the internships illegal.
- Schumann vs. Collier Anesthesia (2015): The court determined that student nurses in an unpaid internship benefited more than the employer, making the unpaid internship legal.
Is an Unpaid Internship Worth It?
Despite the lack of financial compensation, unpaid internships offer several benefits:
- Career Exploration – They allow you to test different career paths before committing to a full-time job.
- Skill Development – Unpaid internships help build both technical and soft skills, such as communication and teamwork.
- Enhanced Résumé – Employers value practical experience, and internships demonstrate your ability to work in a professional setting.
- Real-World Exposure – They provide insights into industry operations that cannot be learned in a classroom.
- Networking Opportunities – Interns can connect with industry professionals who may offer mentorship or job referrals in the future.
What Does an Unpaid Internship Involve?
Unpaid internships are designed to provide training and experience rather than perform essential business functions. Interns typically work on projects, adhere to deadlines, and participate in team meetings, similar to regular employees. However, they should not be used as a replacement for paid workers.
What Are Your Rights as an Unpaid Intern?
While unpaid interns are not entitled to wages, they still have workplace rights, including:
- A Safe Work Environment – Employers must comply with Occupational Safety and Health Act (OSHA) regulations.
- Educational Focus – The internship should provide academic value or training relevant to your career.
- Fair Treatment – Interns are protected from discrimination and harassment under Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA).
- Not Replacing Paid Employees – Interns should not perform tasks that a paid worker would typically handle.
- Access to Resources and Mentorship – Interns should receive necessary tools and guidance to maximize their learning experience.
How Long Do Unpaid Internships Last?
The duration of unpaid internships varies but typically aligns with academic semesters or summer breaks, lasting 10 weeks to 3 months. Some may extend beyond this timeframe, particularly if they are integrated into academic programs.
Frequently Asked Questions
Q: How can I find an unpaid internship?
Unpaid internships are often listed on college career portals, job boards (LinkedIn, Glassdoor), networking events, and industry associations. You can also contact organizations directly to inquire about opportunities.
Q: How can I financially prepare for an unpaid internship?
Since unpaid internships do not offer salaries, consider alternative financial support options such as part-time work, savings, stipends, or scholarships. Some organizations may provide travel or meal reimbursements.
Q: Do unpaid internships lead to paid jobs?
While there is no guarantee of a job offer, many employers use internships as a trial period for potential hires. Excelling in an unpaid internship can increase your chances of securing a paid position later.
Unpaid internships can be valuable career-building experiences if they comply with labor laws and prioritize education. Before accepting an unpaid internship, research the employer, understand your rights, and evaluate whether the experience aligns with your career goals. By staying informed, you can ensure that your internship is legally compliant and personally rewarding.