When are Unpaid Internships in Violation of the Fair Labor Standards Act? By Dan Atkerson on April 12, 2017

Are unpaid internships illegal?There have been several cases over the last several years involving unpaid interns filing class action lawsuits to recover wages. MGM recently settled for $232,500 with unpaid interns it had hired. According to the MGM intern who filed the lawsuit, she was hired to perform entry-level work. Similar lawsuits were filed against Comcast, Conde Nast and Viacom. Unpaid internships may be illegal if they are not educational and for the benefit of interns.

There are some cases where unpaid internships at for-profit organizations are in violation of the Fair Labor Standards Act. The Department of Labor has six criteria that must be met for an unpaid internship to be considered lawful.

  1. Internships must be similar to the type of training which would be given in an educational environment.
  2. Internships must be for the benefit of interns. For-profit organizations cannot receive the primary benefit.
  3. Interns cannot be hired to replace existing employees.
  4. For-profit organizations cannot gain immediate advantages from the activities of interns.
  5. Interns are not necessarily guaranteed jobs after internships end.
  6. The organization and intern understand there is no guarantee of wages during the internship.

Can Unpaid Interns File Lawsuits for Back Pay?

Unpaid internships should be educational and must benefit interns. These positions should be structured to resemble a classroom or academic experience. They must not be used to augment an organization’s existing workforce. If an employment relationship exists, organizations are required to pay interns minimum wage.

Depending on the circumstances, unpaid interns may be able to file class action lawsuits for back pay. Dallas labor law attorney Dan A. Atkerson can help victims of wage theft look at available legal options.

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Dan Atkerson

Law Offices of Dan A. Atkerson

Dan A. Atkerson has been protecting the rights of North Texas employees for over nearly four decades. He is affiliated with several prestigious legal organizations, including: 

  • United States Court of Appeals Fifth Circuit
  • State Bar of Texas
  • Texas Supreme Court and all Texas trial and appellate courts 
  • Texas federal courts for the Northern and Eastern Districts of Texas
  • United States Court of Appeals for the Fifth Circuit
  • State Bar of Texas
  • Dallas Bar Association 

Through aggressive, knowledgeable representation, he has helped clients all over the state reach significant verdicts and settlements. To schedule your free consultation at our law firm, request an appointment online or call us at (214) 383-3606.

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