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[quote=Anonymous]OK, lawyer here.  I am going to make it easy for you.  For those of you who didn't want to read the DOL guidelines previously posted, here's what's happening.  Yes, we all had unpaid internships when we were young.  There was some abuse.  The law is changing, both state and federal.  DOL has issued new guidelines and there are suits galore.  Most companies are aware of this and are treading carefully in this area.  If you want to get your company in trouble, go right ahead with the unpaid internship.  If not, read the DOL guidelines.  For those that can't handle that, here's a recap of where we stand with unpaid internships in the USA from "internship" in wiki:

United States[edit]
Many internships in the United States are career specific. Students often choose internships based on their major at the university/college level. It is not uncommon for former interns to acquire full-time employment at an organization once they have enough necessary experience. The challenging job market has made it essential for college students to gain real world experience prior to graduation. Yet, only 37% of unpaid interns have job offers awaiting them at graduation compared to 60% of paid interns and 36% of students with no internship experience.[33] In the US, company internships are at the center of NIGMS funded biotechnology training programs[34] for science PhD students. The Office of Personnel Management of the US Federal government operation operates a robust internship program for college students and recent graduates.[35]
Not all internships are paid. Many internships that are unpaid involve receiving college credit, especially if an internship is correlated with a specific class. The U.S. Department of Labor's Wage and Hour Division allows an employer not to pay a trainee if all of the following are true:[36]
The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or academic educational instruction;[36]
The training is for the benefit of the trainees;[36]
The trainees do not displace regular employees, but work under their close observation;[36]
The employer that provides the training derives no immediate advantage from the activities of the trainees, and on occasion the employer’s operations may actually be impeded;[36]
The trainees are not necessarily entitled to a job at the conclusion of the training period; and[36]
The employer and the trainees understand that the trainees are not entitled to wages for the time spent in training.[36]
The employer must cover the bill of the trainees when trainees are attending any outing with the employer(Dinner, staff lunch, etc.) .[36]
An exception is allowed for individuals who volunteer their time, freely and without anticipation of compensation for religious, charitable, civic, or humanitarian purposes to non-profit organizations.[37] An exception is also allowed for work performed for a state or local government agency.[37]
Some states have their own laws on the subject.[38] Laws in the state of California, for example, require an employer to pay its interns working in California unless the intern receives college credit for the labor.[38]
In April 2014, Condé Nast has settled Ballinger vs. Advance Magazine Publishers Inc. lawsuit over unpaid interns.[39] "Former W Magazine intern Lauren Ballinger and former New Yorker intern Matthew Leib" filed the lawsuit in federal court in the Southern District of New York in June 2013.[39] The interns' "claimed they were paid below minimum wage when working for the Condé Nast titles" and, as a result, "Condé Nast decided to discontinue its unpaid intern program."[39]
In 2012, a former Harper’s Bazaar intern sued Hearst Magazines because of a claim of violating minimum wage and overtime laws.[39] The "judge dismissed that case, but the intern appealed the ruling."[39]
In New York federal court, the Fox Searchlight Pictures litigation is a class-action suit claiming "that Fox violated federal and state minimum wage laws by not paying production interns working on its “Black Swan” film."[39] In June 2013, the judge ruled that the unpaid interns were employees, which "are entitled to wages under the Federal Labor Standards Act."[39]
South America[edit]
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