Unpaid Work : An Unpaid Internship

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Fact Sheet #71 was created in April 2010 by the Wage and Hour Division of the U.S. Department of Labor. This sheet was generated for use in determining whether the Fair Labor Standards Act (FLSA) requires a “for-profit” private sector employer to pay its unpaid interns minimum wage (Bacon, 2011). The test for unpaid interns section in particular has caused some intense debate over the issue of unpaid interns. Fact Sheet #71 offers direction on determining an unpaid internship’s legality. These include that the internship is for the benefit of intern rather than the employer, 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” (U.S. Department of Labor, 2010).
Universities need to take great care when filtering, posting and encouraging these unpaid opportunities to ensure that they are the best opportunities for their students. While an unpaid internship provides invaluable experience to the student intern (Yagoda, 2008), universities are being criticized for promoting a practice that is seen as discriminatory. Unpaid internships are seen as discriminatory by some because unpaid interns for nonprofit organizations and government agencies can be classified as volunteers (McDermott, 2013). In addition to McDermott’s opinion, Yagoda sees unpaid internships as discriminatory from a socioeconomic perspective stating that unpaid internships “reinforce the divide between the ‘haves’ and ‘have-nots’ among undergraduates” (Yagoda, 2008). He explains further saying the ‘rich kids’ take the internships and improve their prospects, while the ‘less-off kids’ simply cannot afford to and...

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...v. Fox Searchlight Pictures, Vadake Narayanan, a business professor at Drexel University, says “The employer, the college, and the student should be linked somehow, through a contract outlining learning outcomes, and have a clear understanding of the internship from the start” (Bernhard, 2015).
Not all students are afforded an equal opportunity to take unpaid internships due to the financial hardship. In addition to inequality, NACE statistics show that full time offers do not differ significantly from student who had internships and those who did not. It is advisable that universities refrain from participating and supporting a practice that is discriminatory and sometimes illegal. In offering only paid internships and cooperative education opportunities, universities would benefit more of their student population and avoid urging on additional legal disputes.

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