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Abstract

decision because the investment paid off, I should have negotiated to at least receive a minimum wage based on my experience and current pay.</p><p id="b156">I consistently brushed off the concerns of family members complaining that I was taken advantage of. I responded with I needed to get my foot in the door. This was a temporary option. But they were right. Part of that problem lies with me. I was not my own advocate and should have asked to be compensated for the work I put in.</p><h1 id="fd8b">2. Gaining invaluable knowledge is like winning the lottery. Most of the time, it’s just a stepping stone.</h1><p id="e6bd">My second unpaid internship established a strong foundation for my career in HR. I moved away from solely administrative work and gained knowledge and first-hand experience in recruiting, benefits, employee relations, compensation benchmarking, and much more. Finally, I felt like my internship experience propelled me to easily find a full-time job. But not everyone is so lucky.</p><p id="e30b">Among my peers, most of the unpaid interns I encountered or worked with had a few bullet points to add to their resume. They would spend their time compiling receipts just to add “Accounting Intern” to their resume, without gaining real knowledge of accounts payable or accounts receivable.</p><h1 id="c563">3. Does the company have cash flow issues? Probably.</h1><p id="10af">After working for profitable companies that don’t even entertain the idea of offering unpaid internships, this makes more sense. Companies that are in the startup stage or small businesses have not established enough positive cash flow.</p><p id="73d1">As a result, payroll costs are a significant cost that could jeopardize the company. They then seek the alternative of free labor under the guise of education to reduce their payroll costs.</p><h1 id="bc12">4. Hard to do legally — there is a gray area.</h1><p id="7f67">

Options

Generally, unpaid internships have to be for the benefit of the intern. When the internship is unpaid, this is difficult to legally implement.</p><p id="f2d7">Courts have used the “primary beneficiary test” to determine whether an intern or student is, in fact, an employee under the Fair Labor Standards Act (FLSA). In short, this test allows courts to examine the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship. Courts have identified the following seven factors as part of the test, as explained in the <a href="https://www.dol.gov/agencies/whd/fact-sheets/71-flsa-internships">Department of Labor’s Fact Sheet.</a></p><p id="0c67">In my experience, one of the hardest criteria to satisfy is this one below:</p><p id="f994" type="7">The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.</p><p id="a745">Sure, paid employees might conduct training. But all too often when an employee is out of the office or resigns, the unpaid intern takes on the work of that employee. And the unpaid status remains.</p><p id="2cb1">Unpaid internships in the private sector are rarely done correctly due to the freedom of the company and its managers to decide the guidelines of an unpaid internship. On the other hand, unpaid internships with academic credit are often coordinated through universities and have a strict curriculum similar to a classroom environment.</p><p id="eb1c">I would encourage those considering an unpaid internship to research online and inquire during the interview process on the day to day responsibilities. Asking about the training can offer insight on if the unpaid internship is an opportunity that establishes a foundation for your career or if it’s a poorly planned internship designed to prevent hiring an employee.</p></article></body>

4 Lessons I Learned from Unpaid Internships

The ugly truth from not one, but two unpaid internships

Unpaid internships are heavily debated for their legality and ethical concerns. While unpaid internships can be legal, it’s hard to satisfy all the requirements.

Unpaid internships also benefit those who are in a financial position to be able to take on an internship without pay. I fell into this privileged category myself as a college student living at home with my parents.

While students can qualify for academic for some unpaid internships, not all do. Additionally, those who argue in favor of unpaid internships are largely those who are on the receiving end of their benefit.

Below are 4 lessons I learned from my two internships.

1. During the internship, you feel grateful. Upon reflection, you feel taken advantage of.

I was fortunate to land internships that contributed to the trajectory of my career.

My first unpaid internship introduced me to the office setting basics. When I started, I made every excuse possible to not pick up the phone. I felt nervous, and always felt more confident with email. My manager mentored me to start with phone calls and follow up with emails. Picking up the phone to speak with attorneys provided me immediate growth with the confidence to take charge later in my career.

I took a substantial pay cut to pursue my second unpaid internship. While I don’t regret the decision because the investment paid off, I should have negotiated to at least receive a minimum wage based on my experience and current pay.

I consistently brushed off the concerns of family members complaining that I was taken advantage of. I responded with I needed to get my foot in the door. This was a temporary option. But they were right. Part of that problem lies with me. I was not my own advocate and should have asked to be compensated for the work I put in.

2. Gaining invaluable knowledge is like winning the lottery. Most of the time, it’s just a stepping stone.

My second unpaid internship established a strong foundation for my career in HR. I moved away from solely administrative work and gained knowledge and first-hand experience in recruiting, benefits, employee relations, compensation benchmarking, and much more. Finally, I felt like my internship experience propelled me to easily find a full-time job. But not everyone is so lucky.

Among my peers, most of the unpaid interns I encountered or worked with had a few bullet points to add to their resume. They would spend their time compiling receipts just to add “Accounting Intern” to their resume, without gaining real knowledge of accounts payable or accounts receivable.

3. Does the company have cash flow issues? Probably.

After working for profitable companies that don’t even entertain the idea of offering unpaid internships, this makes more sense. Companies that are in the startup stage or small businesses have not established enough positive cash flow.

As a result, payroll costs are a significant cost that could jeopardize the company. They then seek the alternative of free labor under the guise of education to reduce their payroll costs.

4. Hard to do legally — there is a gray area.

Generally, unpaid internships have to be for the benefit of the intern. When the internship is unpaid, this is difficult to legally implement.

Courts have used the “primary beneficiary test” to determine whether an intern or student is, in fact, an employee under the Fair Labor Standards Act (FLSA). In short, this test allows courts to examine the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship. Courts have identified the following seven factors as part of the test, as explained in the Department of Labor’s Fact Sheet.

In my experience, one of the hardest criteria to satisfy is this one below:

The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.

Sure, paid employees might conduct training. But all too often when an employee is out of the office or resigns, the unpaid intern takes on the work of that employee. And the unpaid status remains.

Unpaid internships in the private sector are rarely done correctly due to the freedom of the company and its managers to decide the guidelines of an unpaid internship. On the other hand, unpaid internships with academic credit are often coordinated through universities and have a strict curriculum similar to a classroom environment.

I would encourage those considering an unpaid internship to research online and inquire during the interview process on the day to day responsibilities. Asking about the training can offer insight on if the unpaid internship is an opportunity that establishes a foundation for your career or if it’s a poorly planned internship designed to prevent hiring an employee.