Obama Administration’s Unpaid Internship Regulations May Limit Opportunities

In a rapidly shrinking job market, the new graduate faces unparalleled challenges in finding work. Even before the recession, the college internship operated as an intermediary step between education and employment. In April, however, the U.S. Wage and Hour Division released a Fact Sheet on the legalities of hiring unpaid interns, presenting criteria for prospective employers to meet before moving forward with intern employment.

The criteria brings prevailing labor laws into perspective, requiring that the intern “not displace regular employees,” that the internship be “similar to training which would be given in an educational environment,” and that the employer “derives no immediate advantage from the activities of the intern.”

According to a recent article in the New York Times, these requirements may hurt, not help, potential interns. Many companies and institutions that had previously offered unpaid internships cancelled their programs as a result of the Fact Sheet, or cut down on the number of interns they hired. The Times article highlighted the potential unfairness of access to unpaid internships by students who have the means to spend an entire summer without gainful employment. However, in an economic climate that offers few opportunities to young people, it’s hard to begrudge anyone a head start on a career.