The Department of Labor sets forth specific requirements that must be met in order for an unpaid internship to be in compliance with the law. If unpaid internships are improperly structured, the intern may have legal recourse against the employer.

Notably, and perhaps surprising to many employers, the internship must benefit the intern – not the business.

In order to comply with applicable laws, employers should create unpaid internships that essentially provide vocational training for interns. The interns must be closely supervised, the company should derive no immediate benefit from the intern’s activities and both employer and intern need to understand that the position is unpaid. In short, the internship program should be a well-thought-out, highly structured program.

These strict requirements and lawsuits against employers may lead to fewer unpaid internship opportunities. Businesses considering hiring unpaid interns may wish to rethink that option, depending on the intended purpose of the position.

Read more about this topic in an article I was recently quoted in: A shocking number of unpaid internships could be illegal (Business Insider, 6/24/13)

Image courtesy of FreeDigitalPhotos.net

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