Unpaid internships a loss for both employers and employees

Unpaid internships a loss for both employers and employees

Tegan Joseph Mosugu, Staff Writer

College students regularly take on unpaid internships. Many of these internships require a full-time commitment, with little or no monetary compensation. Employers use unpaid internships as a source of free skilled labor, but they are failing to see the ramifications of hiring unpaid interns instead of salaried ones. A survey by the National Association of Colleges and Employers found that of the 55 percent of the graduates in the Class of 2012 had internships or co-ops, an outstanding 47 percent of them were unpaid. This number is far too high, and NYU is to be commended for its stringent rules concerning unpaid internships, which must comply with regulations set forth by NYU and the Department of Labor.

Although unpaid internships might seem like a logical means of reducing labor costs, both the organization and intern find themselves in a lose-lose scenario. Unpaid internships make students less likely to be compensated down the line when it comes to searching for jobs. Taking one unpaid internship creates a domino effect, in that a future employer thinks that not paying the intern is acceptable, when it simply is not. College students deserve to be compensated for their contributions to companies. Even when employers replace academic credit for compensation, they need to be cognizant of the fact that they cannot overwork their interns. This past summer, Anthony Tart sued Lionsgate and its subsidiary “The Wendy Williams Show” because interns like him were allegedly required to work as full-time employees. The lawsuit eventually included 1,800 individuals and required Lionsgate to pay its former interns a sum of $1.3 million.

Additionally, employers need to be aware that some of the unpaid interns they hire come from moderately low-income households. Thus, an unpaid internship at a dream company increases the financial burden they have. In fact, the cost-benefit analysis would show that staying in an expensive city like New York over the summer, is actually a loss for them, given that living in a large city requires the student to pay rent and other expenses. If employers were able to provide opportunities to students and meet their financial means, I believe interns would not only be happier, but also more productive. Take, for example, an organization like the United Nations. Many NYU students would love to work there, but it is baffling that the organization cannot afford to pay its interns. It’s Nonprofits 101 — part of running any organization involves covering your administrative costs, which includes your staff. It is unforgivable when entities with the financial power opt for unpaid internships instead of providing compensation, even minimum wage.

Companies must begin to phase out the practice of unpaid internships. Even if it is an internship for academic credit, interns are humans who work and should be fairly compensated like anyone else who provides labor.

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Email Tegan Joseph Mosugu at [email protected].