Are Unpaid Internships Legal?
With roughly 47% of U.S. interns being unpaid each year, the Department of Labor has relaxed its rules on when an unpaid internship is allowed. In general, an unpaid internship is legal when the intern is a student or receiving academic credit. If the employer is getting the most benefit out of the work relationship, then the intern is an employee and should be compensated accordingly.
In this article, our Harrisburg employment law attorneys discuss the criteria that determines if an intern should be paid, along with the benefits of retaining counsel.
Department of Labor’s Primary Beneficiary Test
As of 2018, the Department of Labor replaced its rigid six-factor test with a more flexible primary beneficiary seven-factor test, which examines the following:
- The degree to which the intern and employer agree that there is no compensation involved for work performed. If compensation is agreed upon, then the intern becomes an employee.
- The degree to which the internship provides academic training and other skills that would be developed in a clinical environment.
- The degree to which the internship is tied to your coursework, including if you are receiving academic credit.
- The degree to which the internship counts toward your academic requirements.
- The degree to which the internship’s duration is limited to providing you with beneficial knowledge, not on-the-job training.
- The degree to which the internship complements the work of other employees, not replacing their work.
- The degree to which the employer and intern understand that completion of the internship does not guarantee the intern a paid employment opportunity.
What Should I Do If I Think I Should Get Paid as an Intern?
If, after examining these factors, all signs indicate that you should be compensated for your internship, you first want to discuss your concerns with human resources (HR). Before meeting with a HR manager, you should be ready to discuss the seven factors detailed in the primary beneficiary test discussed above. Any correspondence from your employer indicating your status as an employee can help to support your case.
If the HR manager does not agree with your points, then you should speak with a Harrisburg employment law attorney. An attorney can review the arrangements of your internship to determine if you should be legally paid. If an employment law attorney agrees that you should be compensated for your work, then you may consider taking your case to court.
Consult with a Harrisburg Employment Law Attorney Today
An employer refusing to pay you when they legally should is employment abuse. If you have reason to believe that you should be compensated for your internship, please reach out to our Harrisburg employment law attorneys. At Mette Attorneys at Law, we have successfully assisted hundreds of people in getting adequate compensation for their hard work.
Whether you have requested compensation and been denied or are afraid to broach the subject with your employer, our legal team is here to help. To learn more or to schedule your initial consultation, contact us online or by phone today.