Internships are practically a rite of summer for many government agencies located in Washington, D.C. and Prince George’s County. Traditionally, such unpaid relationships were perceived as a benefit to both employer and intern alike. The intern could gain valuable industry experience, while the employer might benefit from additional assistance in areas not requiring the attention of more senior workers
Although internships may be unpaid, students in college or other training programs view the trade-off as worth it. Such students might not yet be qualified for the positions they later hope to obtain. Although unpaid, the connections and insight into the daily duties of such positions can be invaluable.
However, a recent decision by a federal district attorney might cast the future of this practice in doubt. The case involved an employment lawsuit brought by two former interns at Fox Searchlight studios. The interns claimed their work responsibilities went beyond the traditional scope of unpaid internships, amounting to free — and possibly illegal — unpaid labor.
At the federal level, the minimum wage is $7.25 per hour, as set by the Fair Labor Standards Act. States may also set higher amounts, in which case a worker might be entitled to the higher amount. In this case, the federal judge agreed that the studio may have broken minimum wage laws. The decision may also make it possible to bring a class action lawsuit on this issue.
From an employer’s perspective, the practice of internships might be better insulated from lawsuits by codifying the expectations and duties of interns in a formal document. Although unpaid interns may not technically be employees — and thus not subject to a traditional employment agreement — an employer should still follow best practices and memorialize its intern program in employee handbooks or other official documents.
Source: theatlantic.com, “The Court Ruling That Could End Unpaid Internships for Good,” Jordan Weissmann