Let's Get Legal: Guidelines for Paid or Unpaid Internships

One of the greatest woes of an internship is that it is, more often than not, unpaid. Interns are some of the hardest working employees because they want nothing but experience, or perhaps, opportunities in return for a job well done. Sometimes, employers take advantage of this, keeping interns longer than necessary and making them work for free. They may even give false promises of future positions without following through. Certainly, this is not the situation for all internship hosts; we’re just referring to the bad eggs here. Luckily, for students everywhere, the U.S. Department of Labor has caught onto these practices. As a result, they've established regulations that control whether or not an internship must be qualified as paid or unpaid. Suppose an internship qualifies as a paid position. In that case, interns legally must be paid the federal minimum wage (at the very least) for the services they provide within the “for-profit” or private sector. They must also be paid overtime. Both regulations fall under the Fair Labor Standards Act (FLSA).

Guidelines for Unpaid Internships

In addition, the U.S. Department of Labor has developed six new criteria that an employer must apply to determine whether an internship legally qualifies to work without compensation. The following seven standards must be met to establish that an intern qualifies to work unpaid:

1. The employer and intern both clearly understand that compensation is not expected. If compensation is implied or promised, the intern is considered an employee. 2. The internship, even though it includes the actual operation of the employer's facilities, is similar to training that would be given in an educational environment. 3. The internship experience benefits the intern and their formal education, tying in integrated coursework or receipt of academic credit. 4. The intern does not displace regular employees but works under close supervision of existing staff; 5. The internship accommodates the intern's academic commitments and schedule. 6. The internship is limited to the time period in which the intern is provided with beneficial learning. 7. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship at its conclusion.

(U.S. Department of Labor Wage and Hour Division)

Assuming the internship qualifies under all seven factors as unpaid, the FLSA does not consider an employment relationship to exist. Therefore, the intern no longer qualifies for the minimum wage and overtime requirements under the law. Make sure you know your rights as an intern so you don’t get taken advantage of. While there are many amazing employers out there with wonderful internship opportunities, some employers are either unaware of the laws or are willing to take advantage of students looking for work experience.

Finding Internship Opportunities for Students

As students begin the internship search process, a few things must be considered. First, an internship should not serve the purpose of providing you with a paycheck. Above all, an internship should be viewed as a hands-on learning opportunity. While many internships are unpaid, they still provide plenty of value. Future employers love to see internship experiences on resumes. It shows that students are hard-working, dedicated, and have real work experience related to the career or field they’re applying and interviewing. Even if the internship experience is outside of the career or field the student pursues after graduation, it still provides essential work experience that may not be earned with a part-time job. That’s not to say that a part-time job doesn’t look as good as an internship on the resume; it’s just a different experience. Students should ask if internships can be counted as academic credit. The internship experience shouldn’t exist outside your higher education; it should be included. Ask your college advisor whether your internship can be counted toward your academic experience, and they will direct you to the person or department you need to contact to make this possible. If you’re hoping to land a summer internship, the time to start is now.

2025 Paid Internships for Students

Internships can also be found by networking with your friends and family, which will require you to ask them about opportunities that they know of. Finally, you can find internships through your college’s Career Center. They have many opportunities they can recommend and an alumni network to put you in touch with at certain companies. As you take on the internship search, you now know what to look for in an unpaid or paid internship experience. With these standards in hand, you can ask the right questions to determine where your internship falls on the scale and whether or not your potential employer is following the law.