Unpaid internships don’t mean no rights: What every intern should know

The job market for college graduates is becoming increasingly competitive, prompting many to pursue unpaid internships to gain experience and boost their appeal to future employers. However, organizations like the National Association of Colleges and Employers (NACE) have urged Congress to eliminate unpaid internships, arguing that they perpetuate economic inequality. Research by NACE shows that paid interns are significantly more likely to receive job offers, and their starting salaries as full-time employees tend to be higher.

So, before you accept an offer without pay, it’s important to understand the rights you still have as a worker, which can vary depending on the state you live in.

First and foremost, you should check whether you qualify as a worker under the Fair Labor Standards Act (FLSA). The U.S. Department of Labor (DoL) provides a simple test to determine this. If you qualify, the company must pay you at least the federal minimum wage, which currently stands at $7.25 an hour.

The DoL explains that the “primary beneficiary test” is used in court “to determine whether an intern or student is, in fact, an employee under the FLSA,” and it includes seven factors.

The test is designed to protect both interns and employers. For interns, the employer must clearly outline expectations—such as hours, whether compensation or academic credit will be offered, and whether the internship aligns with the student’s academic calendar. It must also be made clear from the start that the intern is not entitled to pay. The goal is to ensure that unpaid internships provide meaningful educational or professional experience—not just free labor.

The DoL notes that the test is “flexible” and that “no single factor is determinative.” Each case depends on its unique circumstances. However, if the test shows that an intern is effectively functioning as an employee, they are entitled to minimum wage and overtime pay.

What to do when unpaid internships go wrong

According to the Bell Law Group, interns “may have a legal claim if you were hired for an internship under the guise of providing vocational and educational benefits, and the company failed to do so.” Unfortunately, these cases often require litigation, and not all interns have the resources to hire a lawyer.

However, students—especially those whose internships are arranged through a college or university—should reach out to the program’s coordinator. Schools may have a responsibility to protect students’ rights in these situations.

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