The Scandal of Unpaid

Internships

By Araceli “Sally” Pérez-Ramos

A Brief History in the Origin of Internships

Did you know…

Fair Labor Standards Act

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.

The Black Swan Case

Largest landmark case in unpaid internships

The Hearst Corporation

• Esquire, Redbook, Marie Claire• Xuedan “Diane” Wang called the “Norma Rae

of fashion interns• Importance of

“Class Certification”

540 ESPN Milwaukee

“I thought that I was wronged…It’s not really about money. I want to prevent this [experience] for future

interns” (Barnidge, 2013, p. 1).

Employer Concerns

“Who will this benefit? If the honest answer is ‘the company’ you will want to think again.” (Gest, 2013, p. 22).

“All the potential legal ramifications an employer would have with independent contractors, the company would also have with interns. These ramifications include workers’ compensation,

personal injury claims, and state law issues.” (Potential Pitfalls, 2013, p. 8).

Condé NastThe decision to shut down the internship program “shocked

former interns and aspiring writers, who say the decision will hurt college students struggling to gain experience at a

shrinking number of publications…the decision will close the door on hundreds of students hoping to intern at [Condé Nast

publications] making it even tougher to break into the journalism industry, students say” (Otani, 2013).

Recommendation for Employers

Either pay the internOr create a formal learning agreement

Academia v. US Government• No friendly line broached when it comes to colleges and the Labor

Department understanding on how internships should be handled financially

• “It’s up to the colleges and universities to define the educational import of the internship. Some unpaid internships may exploit students, and the Labor Department must enforce the law. But assessing educational merit is colleges’ – and their accreditors’ – prerogative.” (Lipka, 2010, p. 1).

The Faux Pas of Academic Credit

“At institutions across the country, full time, unpaid internships required for graduation are often charged at

or near the normal tuition rate” (Perlin, 2011, p. 1).

“The National Association of Colleges and Employers has found that only 28% of colleges associate classroom

experience with academic credit for internships, while 25% do not require any kind of written assignments, 15% do not require any faculty supervision and 6% require nothing at

all” Perlin, 2011, p. 2).

A Solution by the University of Texas at Austin

• “The LACI 101: Credit Internship Course is a one-credit, web-based course designed to complement a student’s internship experience.  Assignments will be completed each week and uploaded to UT’s online course site, Canvas. Assignments include journals, resume writing, evaluations and a final paper” ("UT College of Liberal Arts", n.d.).  Internships can be located in any area around the country and across the globe. Internship site eligibility is evaluated on a case-by-case basis using the base criteria as provided by the Liberal Arts Center.

• UT’s LAC website states “the fee for the LACI Internship Course has an administrative fee of $40 and a course fee of $260, for a total of $300.”

Conclusion: Will you be a Gladiator?