Do Internships Pay?
The Fair Labor Standards Act creates guidelines for minimum wage, overtime and child labor. The act also covers internships and whether or not the intern must be paid at least minimum wage for the work. Understanding the requirements under the FLSA helps determine if a wage is required for a specific internship based on the type of work and training received.
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Training
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In order to have an unpaid intern, the company is required to provide instruction to the intern, who is in the position to satisfy her own interests. The intern must receive training and educational opportunities similar to that which she would receive in a higher education program. Although the majority of the learning takes place hands-on in the workplace, it needs to have a more academic structure rather than just working a job for the summer. Unpaid internships must primarily benefit the intern rather than the employer. Internships that lack the strong academic component should pay the intern under the FLSA.
Work
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The specific work that an intern does is another determining factor in whether she is paid or not. The intern should primarily be on location to learn, not to take over the job duties for an employee. An intern who shoulders a portion of the workload that would normally be handled by a full-time employee deserves financial compensation. For example, if a company uses an intern as a temporary replacement for a full-time employee who is on maternity leave or who recently quit, that intern should receive at least minimum wage for the work. An unpaid internship should end after a specified period of time without the assumption that the intern will continue with the company as a full-time employee.
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Factors
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In addition to the requirements set forth by the FLSA, the decision to offer a paid or unpaid internship depends partially on the company. Even if the internship qualifies as being unpaid, a company may decide to pay the intern. Smaller companies might not have the financial resources to pay an intern. When applying for internships, you should review all of the duties, qualifications and terms before accepting the position.
Expenses to Intern
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Whether or not the internship itself is paid, the intern is likely to face expenses of her own during the experience. This is especially true if she relocates to another city to take on the job. She incurs living expenses, which include temporary housing and food. Some internships offer a stipend for these expenses or provide a housing option, while others leave these expenses up to the intern to cover. You may spend money on appropriate clothing for the workplace. You also miss out on income from a potentially better paying job you could have had for that time period. Weighing the costs to you with the experience and competitive edge gained from the internship helps determine if the position is worth it, paycheck or not.
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References
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