One of the biggest debates around the use of unpaid interns, especially in for-profit businesses and organizations, is line #4 of the Fair Labor Standards Act (FLSA), which outlines six criteria that need to be met to qualify as an unpaid internship:
- 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;
- The internship experience is for the benefit of the intern;
- The intern does not displace regular employees, but works under close supervision of existing staff;
- The employer that provides the training derives no immediate advantage (or benefit) 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; and
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
This law was written in 1938, and line #4 has always been the main sticking point. Interns always provide a benefit to their employers, even if it?s just sharpening a pencil,? let alone doing some great work and contributing to the business or organization they are interning for.
The irony is that, whether paid or unpaid, interns want their work to benefit their employers.? They want to see their work utilized, they want to contribute and be part of the team, and they want to put real work experience on their r?sum?s and show real projects in their portfolios.? This is the whole point of doing an internship.
And employers need to benefit from interns, or there is no point for them to offer internships.? The reality is that many employers, especially solo-professionals, small businesses, and non-profits, just don?t have the resources to offer paid internships, but while they can?t offer money, they can offer great experiences.
Since over 50% of internships turn into full-time, paid employment, more internships, both paid and unpaid, lead to more jobs, which leads to a better economy.? Everyone benefits.
But line #4 has stopped many employers from even offering internships out of fear of breaking the law or have caused internships to be greatly watered down.
This issue has become especially loud and heated in the past few years as unpaid internships have increased in response to the downward economy, leaving all parties involved, including employers, interns, schools, career counselors, and parents, confused about the legality and ethics of unpaid internships.
Recently NACE (The National Association of Colleges and Employers),? put out a position statement to put forth their definition and criteria for internships:
- The experience must be an extension of the classroom: a learning experience that provides for applying the knowledge gained in the classroom. It must not be simply to advance the operations of the employer or be the work that a regular employee would routinely perform.
- The skills or knowledge learned must be transferable to other employment settings.
- The experience has a defined beginning and end, and a job description with desired qualifications.
- There are clearly defined learning objectives/goals related to the professional goals of the student?s academic coursework.
- There is supervision by a professional with expertise and educational and/or professional background in the field of the experience.
- There is routine feedback by the experienced supervisor.
- There are resources, equipment, and facilities provided by the host employer that support learning objectives/goals.
NACE?s definition removes the issue of ?advantage? and focuses on the learning benefits for the intern, which is where the focus should be.? If both interns and employers insist on the very best learning and work experiences, then both the interns and the employers benefit, and everyone wins.
I hope the Department of Labor follows suit and updates the FLSA to reflect this same thinking.? In the meantime, we encourage all employers, from solo-professionals to Fortune 500 companies, to pay if they can, but not to shy away from high-quality unpaid internships that are truly a win-win for both the intern and the employer.
Michelle Demers is Co-founder and 1/2 of the Dynamic Duo of Super Interns .? She is also Co-creator of The Super Interns System?, a step-by-step guide to creating, building, and growing winning internship programs.? You can download a free copy of her ebook, ?251 Super Internship Projects? at SuperInterns.com.
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