Information sheet no. 71 was created in April 2010 by the Wage and Hour Division of the U.S. Department of Labor. This sheet was generated for use in determining whether the Fair Labor Standards Act (FLSA) requires a “for-profit” private sector employer to pay minimum wage to its unpaid interns (Bacon, 2011). The section on testing for unpaid interns, in particular, has provoked intense debate on the issue of unpaid interns. Information sheet no. 71 offers guidance on how to determine the legality of an unpaid internship. These include that the internship is for the benefit of the intern rather than the employer, the intern is not necessarily entitled to a job upon completion of the internship, and "the employer and intern understand that the intern is not entitled to pay for the internship time spent in internship” (U.S. Department of Labor, 2010). Colleges must be very careful in filtering, posting, and encouraging these unpaid opportunities to ensure they are the best opportunities for their students provides valuable experience to the student intern (Yagoda, 2008), universities are criticized for promoting a practice that is considered discriminatory. Unpaid internships for non-profit organizations and government agencies can be considered discriminatory. classified as voluntary (McDermott, 2013). Adding to McDermott's opinion, Yagoda sees unpaid internships as discriminatory from a socioeconomic perspective stating that unpaid internships “reinforce the divide between the 'haves' and the 'have-nots' among university students” (Yagoda, 2008). He explains further by saying that 'rich kids' go to internships and improve their prospects, while 'less well-off kids' simply can't afford it and... middle of paper... see. Fox Searchlight Pictures, Vadake Narayanan, professor of economics at Drexel University, says: "The employer, the university and the student should be connected in some way, through a contract that outlines the learning outcomes, and have a clear understanding the internship from the beginning" (Bernhard, 2015). Not all students are offered the same opportunities to undertake unpaid internships due to financial difficulties. In addition to inequality, NACE statistics show that full-time offers do not differ significantly between students who have done internships and those who have not. Universities should refrain from participating in and supporting a discriminatory and sometimes illegal practice. By only offering paid internships and cooperative education opportunities, universities would benefit more from their student populations and avoid inviting further litigation.
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