Surprised me! So, I called wife (Head of HR where she works) for a clarification. For years the business had a waiting list because it was popular, easy going, taught real skills (not just busy work) & exposed Interns to federal agencies. Many Interns found good private & federal contacts that hired them right out school.  Everyone was happy with the arrangement. [My summary here is a general one. An impression based on knowing how the principals run their shop.]

Fast forward to today. She said no unpaid Interns anymore. As a matter of fact there are only a few brought in on a case by case review. And all the part-time/temporary employee paperwork gets filed. She gets more work for less satisfaction by “hiring” summer college students. Nobody is happy, especially the engineering students. So, this Dept. of Labor stuff effects every business I am sorry to say.

REF: http://www.dol.gov/whd/regs/compliance/whdfs71.htm

http://www.dol.gov/whd/regs/compliance/whdfs71.pdf (PDF)

Summary (see PDF for more:
“ Wage and Hour Division (WHD)
(April 2010) (PDF)
Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act
This fact sheet provides general information to help determine whether interns must be paid the minimum wage and overtime under the Fair Labor Standards Act for the services that they provide to “for-profit” private sector employers.
Background
The Fair Labor Standards Act (FLSA) defines the term “employ” very broadly as including to “suffer or permit to work.” Covered and non-exempt individuals who are “suffered or permitted” to work must be compensated under the law for the services they perform for an employer.  Internships in the “for-profit” private sector will most often be viewed as employment, unless the test described below relating to trainees is met.  Interns in the “for-profit” private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek.*
The Test For Unpaid Interns
There are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do so without compensation.  The Supreme Court has held that the term “suffer or permit to work” cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction.  This may apply to interns who receive training for their own educational benefit if the training meets certain criteria.  The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program.
“

Sorry about the messy legal stuff.

It’s okay, and helpful in demonstrating that the law is evolving in this regard.

My frustration is not with internships afforded undergraduates during school or over the summer.  While I think that those should be paid, a reasonable argument can be made that they provide the training and introductions your wife describes was at least once the case.

I wrote this post about people who are graduated, looking for paid work and skilled enough to contribute to a publishing operation.  My niece, for example, is reporting stories, fact-checking contributions and copy-editing content that goes live, at times without any other review or supervision.  But she doesn’t get paid.

I think that’s wrong.  I’m sorry I work in a business that does it.

I got you. I didn’t get to the part you describe. Watching a deadline clock will give you tunnel vision every time. I have to agree with you. And publishing is not alone using the grads that way. Wife is going toe-to-toe with one Principal over his plan, “Bring recent grad in, unpaid, to do junior cad system operator work. If it works out then do hiring paperwork.”

(This is part of reason I had a clue on; “ The economy is weak enough that bright, motivated people are doing work for free in the slight hope that it will result in something paid down the road. “)

She is not going to let a jerk dump real work on the kid for zero compensation for two reasons; 1) It is not right to exploit people, 2) She has to deal with Dept. of Labor (DoL) sniffing around for employee records mandated by their federal contract.

If I just finished school I too would try the “foot in the door” Intern method. That pumping gasoline job I leaned on to pay bills back in the day would have to do again. Today any industry that has entry level jobs in short supply is going to have to realize DoL has their eye on them. Publishing, A/V media creators and in wife’s case, artists and drafters, are going to have to cleanup their act. [Now I am glad I looked up the regulation.]

I hope your niece lands a big fish or even a smaller one, who understands times do change. What was OK in 1970’s or 80’s will not work now. Saving a few dollars by not paying “Interns"will backfire and fines will make everyone involved look like idiots.

Good Luck ya’ll.

Brian, shame on us indeed! I find the widespread use of “pay to play” internships by publishers very distasteful. The practice is made worse by publishers who view interns as free labor to be used for the completion of tasks none of the paid staff want to undertake.

My first job in publishing, many decades ago, was unpaid and did not last long; I walked away from it when I realized I would learn nothing and that there would be no opportunity there after graduation.

Fortunately, my next job was with a publisher who not only paid (a little), but was keen to teach. I was given the opportunity to experience work in a variety of departments, from editorial to sales and marketing. At the time I was a grad school business major; my interest in publishing was not until that internship a career interest.

Ever since that second internship, I have been committed to paying interns and to providing each of them with opportunities to do real work and to learn about the business and the career opportunities. Over the years, a good number of those interns have turned into valued employees after graduation. The investment in them has more than paid off for the different publishing houses I have been involved with (one became president of a multinational; a number of others are today board members of publishing houses).

Exploiting students is not only morally nasty, it is stupid business.

I am in 100% agreement with you regarding unpaid internships and the treatment of interns. It’s a disgrace.

And it’s spreading, as you know, to writers who are now being asked to contribute regular columns *gratis* to places like The Huffington Post, who then monetize that free material. All for a chance for some exposure and the so-called ‘whuffie’, neither of which pays the rent.

It’s exploitation, not a ‘new business model’ or a way to do more with less.