Yathink.tv applauds
NYTimes for this article. For years, at particularly Small Business Development events, the implied suggestion(and dirty little secret) for 'free' labor is to use interns -- which was NEVER the intent for the hiring of interns to begin with. Those seeking internships come in all ages, nationalities and from diverse economic backgrounds. We believe there is still a place for unpaid internships, but only if the they meet certain criteria and are not a substitute for 'free' labor.
Full article from NYTimes below.
NYT: Unpaid internships may be illegal
Officials warn they are stepping up labor law enforcement
By Steven Greenhouse
The New York Times
updated 1:30 a.m. ET, Sat., April 3, 2010
With job openings scarce for young people, the number of unpaid internships has climbed in recent years, leading federal and state regulators to worry that more employers are illegally using such internships for free labor.
Convinced that many unpaid internships violate minimum wage laws, officials in Oregon, California and other states have begun investigations and fined employers. Last year, M. Patricia Smith, then New York’s labor commissioner, ordered investigations into several firms’ internships. Now, as the federal Labor Department’s top law enforcement official, she and the wage and hour division are stepping up enforcement nationwide.
Many regulators say that violations are widespread, but that it is unusually hard to mount a major enforcement effort because interns are often afraid to file complaints. Many fear they will become known as troublemakers in their chosen field, endangering their chances with a potential future employer.
The Labor Department says it is cracking down on firms that fail to pay interns properly and expanding efforts to educate companies, colleges and students on the law regarding internships.
“If you’re a for-profit employer or you want to pursue an internship with a for-profit employer, there aren’t going to be many circumstances where you can have an internship and not be paid and still be in compliance with the law,” said Nancy J. Leppink, the acting director of the department’s wage and hour division.
Ms. Leppink said many employers failed to pay even though their internships did not comply with the six federal legal criteria that must be satisfied for internships to be unpaid.