It is that time of year when many high school and college students are beginning unpaid internship programs at businesses across the country. Most of us have been interns at the beginning of our careers, seeking opportunities for real-world experiences and connections in our sought-after fields of work. What seemed like an institution is now under intense scrutiny and legal attacks. In recent years, all types of employers are being sued over the legality of their unpaid internship programs. Most of these lawsuits seek to hold companies liable under the Fair Labor Standards Act (FLSA) and companion state laws, contending that the businesses are unlawfully withholding minimum wage and overtime pay from their interns, while benefitting from their "free" labor. Given the risks of back pay with interest, as well as litigation costs, a number of companies have elected to discontinue their internship programs.
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