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Criteria for Unpaid Internships

The vast majority of interns working at for-profit organizations must be paid at least the minimum wage and any applicable overtime. Technically, paid interns are temporary employees and treated virtually the same as regular employees with respect to labor law. But you may legally “hire” an unpaid intern if the following six criteria are met:

  1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment.
  2. The experience is for the benefit of the intern.
  3. The intern does not displace regular employees but works under close supervision of existing staff.
  4. The employer providing the training derives no immediate advantage from the activities of the intern and on occasion its operations may actually be impeded.
  5. There is no guarantee of a job at the conclusion of the internship.
  6. Both parties understand that the intern is not entitled to wages for the internship.

Source:  DOL Fair Labor Standards Act (FLSA) Fact Sheet #71, April 2010 (PDF)

For the full description Fact Sheet #71, click here.