Should All Interns be Paid?
75% of college students will have some sort of internship in college. But over 40% of these students will never receive a paycheck for their work. To understand why paying interns $0 an hour is legal, we must go back to passage of the Fair Labors Standard Act in 1938. This act stated that non-for profit and for-profit businesses that generate over $500,000 a year must pay their employees. So why is it still legal to not pay interns? The Supreme Court. In 1947, in Walling v. Portland Terminal Company, they decided that organizations are not required to pay interns since they are receiving more benefits from the position than the organization. Of course, in reality, interns contribute a great deal to the organizations they work at, providing invaluable help that most organizations could not function without. Especially since having an internship does not guarantee a job offer, it could be argued that legally all organizations should be required to pay interns. But putting legality inside, it is important to consider the moral side of this question.
Most people agree that companies who have the means to pay their interns should. But there is another question. What about non-profits barely breaking even? Should they be paying their interns? Obviously, some non-profit entities, such as universities, have the resources to pay interns, and should pay. But there are many charities and organizations that cannot actually afford to pay interns. It does not appear immoral then for them to not pay interns. But by not paying interns, are they exacerbating the problems their organization set out to solve?
Consider a charity dedicated to helping immigrants adjust to the United States. They offer unpaid internships to college students. The interns help teach immigrants English and assist in management tasks for the charity. This arrangement may seem beneficial for both sides. The students learn how a charity runs, how to teach English, and develop an important entry on their resume. The charity gets assistance that allows them to expand the number of immigrants they are helping. What about immigrant college students? They may have important knowledge and experience to help immigrants resettle and learn English. They may want to learn more about how charities operate for their future career. Despite these advantages, they may be shut out of an important experience because they cannot afford to take an unpaid internship. In this situation, a charity dedicated to helping immigrants succeed is holding them back.
Unpaid internships act as a barrier for low-income students. They help perpetuate a cycle that disadvantages these students. By shutting out the very people they want to help they are failing in their mission. But neither can they afford to continue their work and pay students.
Some organizations and colleges, such as WashU, offer stipends to students with unpaid internships. While these have the possibility of being beneficial, they often do not provide enough support for students to afford to live in the cities where they are working for free. For example, consider a student with an internship working with a charity in New York. The internship lasts about three months and is unpaid. A student who gets this internship would need to afford to live in New York. for three months. For many students, this cost would be staggering. Even if this student received a $3,000 stipend from WashU (the maximum amount for students with demonstrated need), they would still be stretched thin to afford housing, meals, and transportation. Returning to the question at hand, however, should all internships be unpaid, even internships offered by nonprofit organizations? Neither option, losing out on the assistance provided by interns or perpetuating inequality is “good”, so the question must come to what is better. Better for the students. While any solution will have drawbacks, offering paid internships, at least to students with demonstrated financial need, is an important step that all organizations should take.
If required to pay, some organizations may have to cut back on their number of interns, which would negatively affect the people they are trying to help, the students, and the organization. However, this doomsday scenario is not set in stone. It is possible that colleges or other private organizations can step up and provide additional funding for internships, allowing these organizations to resume offering internships. Yes, it is still possible that requiring payment for all interns would have a huge negative impact. But the current situation, with many students working for free and many more being shut out of opportunities, is much worse.