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Regulators Investigating Unpaid Internships 182

theodp writes "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. '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 the acting director of the US Deptartment of Labor's wage and hour division."
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Regulators Investigating Unpaid Internships

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  • by Skyshadow ( 508 ) * on Saturday April 03, 2010 @02:45PM (#31717640) Homepage

    I believe that internships are important. I was an intern at SGI back in the late '90s, and I still frequently think back to the things I learned working there and applying those lessons to my current career.

    That established, I can also say without hesitation that tech internships aren't like apprenticeships -- you're generally not learning the skills you need to do a given job, but rather applying the skills you've already amassed.

    Really, the benefit of internships is twofold: You learn how to operate in an environment where you're not simply taking instructions (like you would working a job at Subway or mowing lawns or answering support calls, the typical menial jobs you can get before college) but rather participating in the job and dealing with peers, managers, HR twits, etc. Second, and related to this, you're doing it to get it on your resume, proving that you've already been through the learning curve.

    So getting back to my initial point, while an intern obviously may not be as effective as a 'regular' employee, interns are still generally 'earning their keep' from Day 1 by producing value for the company.

    A critical part of any internship, then, ought to be learning to value your skills, to get an idea of what your services are worth. And unpaid internship, while still better than nothing, skips this lesson, and it really is a key one -- I know people who are 15 years into their career and still unable to realize they're wasting their time in a given position or with a particular employer.

  • by mgkimsal2 ( 200677 ) on Saturday April 03, 2010 @02:48PM (#31717664) Homepage

    Really... never understood it. I get the idea of working 'cheap' to gain experience, and I understand volunteering. I also have offered to work at some places for a short time (week or so) to get a feel for the place. But I've never understood applying to ask to be considered to be approved to then go spend months of my life working for a company which is in the business of making a profit. I guess I never travelled in those sorts of circles where unpaid internships led to high-paying positions of immense money and power, which is why so many people would be lining up to do them.

    If anyone would care to engage in some unpaid internships for me, let me know.

  • by Mark_in_Brazil ( 537925 ) on Saturday April 03, 2010 @02:49PM (#31717682)

    Unpaid internships are also an easy wayo make sure that only "the right people" (i.e., people from wealthy families) have a chance to get into certain fields. In some fields, it's hard to get hired without experience, and the only way to get the initial experience is through an internship. But there are a lot of people who can't afford to work without any income, so if only unpaid internships are available, only those lucky enough to have been born into wealth can break into those fields.

  • by amaiman ( 103647 ) on Saturday April 03, 2010 @02:50PM (#31717690) Homepage
    So employers will now apply the obvious solution and pay them exactly the state's minimum wage if they're found to be violating the law with unpaid internships.
  • by FooAtWFU ( 699187 ) on Saturday April 03, 2010 @02:51PM (#31717704) Homepage
    Yeah.... a minimum wage of $7.50/hr or whatever California charges these days should not be a big deal for a software-related company, especially next to what they have to pay full-time employees. Heck, IBM was paying me $18.75/hr for an internship right after my sophomore year of college.
  • by Anonymous Coward on Saturday April 03, 2010 @02:53PM (#31717720)

    I'm sure the "slavery" will be allowed for the non-profits.

  • by Rivalz ( 1431453 ) on Saturday April 03, 2010 @02:54PM (#31717724)

    Some people even go as far to pay for education. And the best education is on the job training. Not to mention rubbing elbows with other people in the field.

    I think it is a horrible practice and that any work needs to be compensated but I at least see the reasoning behind it.

  • by Joe The Dragon ( 967727 ) on Saturday April 03, 2010 @03:09PM (#31717862)

    college sports players are the same and need to be payed for playing and not taking way crap / no work fake job in the school book store / school library.

  • by maxxxx ( 1782342 ) on Saturday April 03, 2010 @03:19PM (#31717944)
    That's pretty much how most settlements work. Look at the fines companies have to pay to the SEC. They don't admit any wrongdoing and often settle for less than they made through fraud.
  • by fermion ( 181285 ) on Saturday April 03, 2010 @03:21PM (#31717966) Homepage Journal
    To a point I agree with you. A wealthy person can easily take an unpaid internship. A wealthy person can also sit around and work at Starbuck's living off their trust fund. Or can just live a modest life off their trust fund without working. Such things do happen.

    Sometimes the only way in for a person that was not born into a situation is through an unpaid internship or a low paid contract position, both of which are being limited to corporate abuse. This does not mean that they are useless, or that such deal is bad for a person who is not upper class.

    For instance I volunteered my software development services in high school. It gave me experience writing production code, and every week there was a list of bugs and new features. This lead to some low paid positions, which lead to higher paid positions. I would have more money working at fast food, but that would not have taught me the skills I now use. Did I have to give up a lot to make this happen? Sure. Did my family have to sacrifice? Absolutely. I look at kids with thier $400 tennis shoes and their $300 media players and their cars,and know that thye deserve it because they work 30 hours a week after school for it. But what are they learning? To maximize short term profit? That sacrifice is worthless? What ever happened to dream that if we work had and sacrifice now, and get our degrees in math or science or engineering, the world will open up to us in the future. Now it is like if I can't buy my pair of Nikes,or my iPod, or upgrade my hard drive, life just is not worth living.

  • Re:Dangerous move (Score:3, Insightful)

    by Vancorps ( 746090 ) on Saturday April 03, 2010 @03:35PM (#31718090)
    You would be right if all companies followed the rules but many do not hence the article.
  • by the Dragonweaver ( 460267 ) on Saturday April 03, 2010 @03:49PM (#31718204) Homepage

    One of my respected professors told us flat-out that if you can get paid for work, you should— applying for internships is very counter-productive. I can see the value in certain limited fields (such as animation, mentioned in the article) if they follow the specific rules laid out for under-paid or unpaid interns, but there is absolutely no reason it should spread to the general business community. And if students become convinced that internships are necessary, well, there's a cost savings for the employer with very little benefit to the worker.

    My first post-college job was a real job, and I'd had no internship experience prior to that, only good letters of reference from my professors and perhaps a dash of desperation on the part of my employer. But I'd rather work fast food than be an unpaid flunky for a job that didn't really need more than some basic training, which many of these things do. Internships should be left to those fields that demand a high level of immediate competence and inside knowledge, and the rest should be left to legitimate on-the-job training.

  • by retchdog ( 1319261 ) on Saturday April 03, 2010 @03:49PM (#31718208) Journal

    Yeah, I'm sure $200 a week is a great hardship for a company. Your "stipend and small wage" would be, what, $100/week? $50? Are you actually serious?

  • by musicalmicah ( 1532521 ) on Saturday April 03, 2010 @03:50PM (#31718212)

    This is going to hit that city like a brick in the face.

    I don't think it will. These interns are hard to find by regulators, and when you do find them, they generally don't want to step on any toes. In my experience, interns that are willing to stick up for themselves leave within the first few days. The ones that get suckered into doing menial labor for a year tend to avoid badmouthing their first "employer."

  • by Anonymous Coward on Saturday April 03, 2010 @04:06PM (#31718318)

    And really if they wanted to nail unpaid internships the first sector they should look at is public schools.

  • by Anonymous Coward on Saturday April 03, 2010 @04:44PM (#31718572)

    I'm sorry what? The "barrier" is wealth. If you think that's a worthy barrier to keep the plebes down, maybe you should rethink your party affiliation.

  • Can you read? (Score:2, Insightful)

    by zogger ( 617870 ) on Saturday April 03, 2010 @04:56PM (#31718660) Homepage Journal

    I can't believe you said that stuff to that guy. All he said was it is easier for the already wealthy to take unpaid internships (which would be true), and those positions make it easier to break into the industry (which is also true). How is that redneck or racist to point out two bits of data?

    Don't bother replying, I am guessing such vileness comes from being a chronic drunk, or a dry drunk who is trying to pass for sober.

  • by Anonymous Coward on Saturday April 03, 2010 @04:59PM (#31718674)

    I've got an even crazier idea - they could work during the day, and take classes at night! If they *really* want to look good to future employers, that's the way to go.

  • by haruharaharu ( 443975 ) on Saturday April 03, 2010 @10:35PM (#31720874) Homepage
    Ok, in all honesty, IBM won't be worth pissing on in 20 years - they're done. As Billy said, IBM is run by accountants, so don't really expect anything new out of them.

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