SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP, answers HR questions each week.

Do you have an HR or work-related question you’d like him to answer? Submit it here.

I’m a rising [college] sophomore currently working a paid internship. I’ve come across some highly sought-after opportunities for unpaid internships. Are unpaid internships legal? If so, are they regulated like other employment? — Jahir

Unpaid internships can be a tricky topic, so let’s make things clear.

Yes, unpaid internships can be legal, but they aren’t a free pass for companies to benefit from free labor. The key factor is a concept known as the “primary beneficiary test,” which is used by the courts and the Department of Labor (DOL). Essentially, it determines whether the internship benefits you, the intern, more than the company. Keep in mind that these rules may vary by state, so it’s worth researching your state-specific regulations.

Quiz: When Can Internships Be Unpaid?

Here’s the bottom line for unpaid internships: They should feel more like a learning opportunity than a job. Think of it as an extension of your education. The experience should enable you to acquire valuable skills or training you may not otherwise access, and your responsibilities shouldn’t replace the work of a paid employee. Most importantly, both you and the employer should clearly agree upfront that the internship is unpaid.

To give you a better sense of whether an unpaid internship is legitimate, here are key questions to ask yourself:

• Are you receiving training similar to what you’d get in a classroom setting?  
• Is the internship tied to your academic program or schedule?  
• Is the focus on your learning experience, rather than solely producing work for the company?  
• Does your work support the company’s operations without replacing a paid employee?

Toolkit: Developing and Implementing Internship Programs

If the answers lean toward “yes,” the internship might be a good fit. However, if it feels like you’re being treated as free labor, that’s a red flag.

For paid internships, the rules shift. Once you’re paid, you’re considered an employee, which means labor laws, such as minimum wage and overtime protections, apply. 

Here’s some advice to help you make the most of unpaid internships:

• Focus on the value. Choose opportunities offering genuine learning, skill-building, and networking potential.  
• Know your worth. Remember, your time and effort have value. Don’t hesitate to ask questions to ensure the experience is worthwhile.  
• Do your research. If you’re unsure about the legality of an unpaid internship, look into state and federal regulations, or consult a knowledgeable resource.

Unpaid internships can offer excellent learning opportunities if the arrangement is fair and designed to help you grow professionally. However, always assess the benefits carefully before deciding. Your time is valuable, and the right experience should set you up for success.

Good luck with your internship search — you’re already taking the proper steps by doing your homework!