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Unpaid Internships

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An unpaid internship may provide valuable real world training and experience that might not be available in the classroom. Unpaid internships sometimes lead to paid work experience.

Internships are limited in time and usually last one semester. Internship positions may be paid or unpaid as determined by the employer. Some employers will require students to receive academic credit in lieu of payment. Academic credit is determined by the appropriate academic department and is rarely granted in the case of unpaid internships. Refer all questions to Nora Stickney, Experiential Education Coordinator. Internship structure, hours, compensation and requirements vary by employer.

Employer's Responsibility

In order for an employer to establish a lawful unpaid internship program, the employer must structure the program to comply with the Fair Labor Standards Act (FLSA). The employer who commits to hiring an unpaid intern cannot treat the intern like regular staff or even an employee trainee. The Wage and Hour Division of the United States Department of Labor has outlined six criteria which must be met in order to maintain an unpaid intern program and the employer has the responsibility to ensure that ALL of the following criteria are met:

The following six criteria must be applied when making this determination:

  1. 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;
  2. The internship experience is for the benefit of the intern;
  3. The intern does not displace regular employees, but works under close supervision of existing staff;
  4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
  5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
  6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

For additional information, consult your attorney, tax advisor and the U. S. Department of Labor's "Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act"

Updated 05/10/11

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