B2 Explainer Business Culture & Trends

Are Unpaid Internships Exploitation ?

Unpaid internships are widespread and legal β€” but are they education or exploitation?

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Walk into almost any professional office today and you will likely find someone working for free. Unpaid internships have become a standard part of the modern job market, especially in fields like media, fashion, public relations, and technology. But a growing number of voices are questioning whether this arrangement is genuinely educational β€” or simply exploitation dressed up in professional language.

The practice has deep roots. Internships began spreading widely in the 1970s as more students entered universities and employers used unpaid positions as a low-cost alternative to hiring full staff. By 1992, around 17% of graduating students had completed an internship. Today that figure stands at roughly 75%, and nearly half of all internships in the United States offer no pay at all.

So how is this legal? The answer lies in a 1940s Supreme Court ruling that distinguished trainees from employees. This decision created a legal framework that allows employers to classify interns as learners rather than workers, exempting them from the Fair Labor Standards Act β€” the law that guarantees minimum wage and overtime pay. Government agencies and non-profits face even fewer restrictions, and around two-thirds of government bodies and nearly 70% of non-profits rely on unpaid interns.

The Department of Labor has published seven criteria to determine when an internship genuinely qualifies as training. In practice, however, many employers stretch these guidelines. Interns frequently spend their time on tasks with little educational value β€” administrative duties, filing, or making coffee β€” rather than building real professional skills. When the primary benefit flows to the employer rather than the intern, the line between opportunity and exploitation becomes very hard to ignore.

The consequences go beyond any individual intern. Unpaid positions are simply inaccessible to students who need to earn money to support themselves, creating a significant disadvantage for people from lower-income backgrounds. Research also suggests that unpaid internship experience does not actually improve a candidate's chances of finding a job β€” yet the social pressure to participate remains strong. There is a diversity problem too: unpaid internships are disproportionately concentrated in sectors where women and underrepresented groups are already trying to gain a foothold, directly conflicting with the diversity commitments many organisations publicly promote.

Some change is happening. The White House began paying its interns for the first time in 2022, and several federal bodies followed. Some companies have converted unpaid roles into paid positions, and alternatives such as academic credit or small stipends have been proposed as more equitable models. The core question, however, remains unresolved: an internship offering genuine mentorship and real skill development can be a legitimate learning experience, but when the work primarily benefits the employer, that justification becomes very difficult to defend.

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πŸ“š Key vocabulary

exploitation (noun)
the act of using someone unfairly for your own benefit, especially without giving them fair pay or recognition
"The union argued that expecting staff to work overtime without extra pay was a clear form of exploitation."
exempt (verb)
to officially free someone or something from a rule, duty, or requirement that others must follow
"Small businesses may be exempted from certain reporting requirements that apply to large corporations."
criteria (noun)
the standards or conditions used to judge or decide something (singular: criterion)
"The selection committee used five criteria to evaluate each candidate's application."
stipend (noun)
a small, regular payment given to cover basic expenses, often paid to interns, trainees, or students
"The research programme offers participants a monthly stipend to cover travel and living costs."
gain a foothold (phrase)
to achieve a first position of strength or entry into a competitive area, from which you can grow further
"The company used a small pilot project to gain a foothold in the Southeast Asian market."

✨ Useful phrases for this topic

"dressed up in professional language"
Use this phrase when something negative or unfair is being described with formal or positive-sounding words to hide its true nature.
"The new contract gave employees less flexibility, but the changes were dressed up in professional language about 'streamlining workflows'."
"the line between [X] and [Y] becomes very hard to ignore"
Use this phrase when a situation has reached a point where two things β€” often something acceptable and something problematic β€” can no longer be clearly separated.
"When managers regularly contact staff at weekends with urgent tasks, the line between a healthy work culture and burnout becomes very hard to ignore."
"stretch the guidelines"
Use this phrase when an organisation or person follows the letter of a rule but pushes it beyond its intended meaning or spirit.
"Several firms were accused of stretching the guidelines on remote work expenses to avoid reimbursing staff."

Advanced sentence structures

Patterns from this article you can use in meetings, emails, and everyday English

Structure 1

In context

This decision created a legal framework that allows employers to classify [interns] as [learners] rather than [workers], exempting them from the Fair Labor Standards Act.

The skeleton

Frame: classify [noun] as [category A] rather than [category B]

What it does: Draws a sharp contrast between two ways of labelling or defining the same thing.

Quick swap: "Some platforms classify gig workers as independent contractors rather than employees."

More examples

  • "Many schools now classify social media literacy as a core skill rather than an optional extra."
  • "The report classified the side effects as mild rather than serious, which affected how the drug was approved."
  • "He had always classified himself as a practical person rather than a creative one, but the design course changed his view."

Easy exercise

Arrange the words and add the missing structural elements to build a correct sentence.

  1. unpaid interns Β· classify Β· trainees Β· employees Β· courts
  2. classify Β· renewable Β· a luxury Β· energy Β· governments Β· a necessity
Show answers
  • "Courts classify unpaid interns as trainees rather than employees."
  • "Governments now classify renewable energy as a necessity rather than a luxury."

Open exercise

Write your own sentence using this structure. You can write about anything β€” here are some ideas if you need them:

  • How internships or work experience are seen by employers
  • How a job, role, or task is defined differently in different workplaces
  • How something from everyday life β€” food, exercise, hobbies β€” gets labelled in unexpected ways

One possible answer: "Some companies classify remote workers as consultants rather than full-time staff, which affects their access to benefits."

Structure 2

In context

When the primary benefit flows to the employer rather than the intern, the line between opportunity and exploitation becomes very hard to ignore.

The skeleton

Frame: When [condition / situation], [result or consequence] becomes [adjective / hard to ignore / difficult to deny].

What it does: Sets up a condition and then shows what conclusion or problem that condition makes unavoidable.

Quick swap: "When a company's profits rise while workers' wages stay flat, the question of fairness becomes very hard to ignore."

More examples

  • "When a student spends more time preparing for tests than actually learning, the purpose of education becomes difficult to defend."
  • "When healthcare costs rise faster than average salaries, the gap between rich and poor becomes impossible to overlook."
  • "When a public figure's private behaviour directly contradicts their public statements, the issue of credibility becomes hard to avoid."

Easy exercise

Arrange the words and add the missing structural elements to build a correct sentence.

  1. interns Β· routine tasks Β· no new skills Β· assigned Β· are Β· gain
  2. a city Β· affordable housing Β· disappears Β· long-term residents Β· cannot stay
Show answers
  • "When interns are assigned routine tasks and gain no new skills, the claim that it is training becomes very hard to justify."
  • "When affordable housing disappears, the reality that long-term residents cannot stay becomes impossible to ignore."

Open exercise

Write your own sentence using this structure. You can write about anything β€” here are some ideas if you need them:

  • The conditions under which unpaid work stops feeling fair
  • A workplace or study situation where a problem becomes impossible to ignore
  • An everyday situation β€” technology, transport, food β€” where something's cost or impact becomes undeniable

One possible answer: "When employees are expected to answer messages at midnight, the boundary between work and personal life becomes very hard to maintain."

πŸ’¬ Discussion questions

1

What is the difference between a genuine learning internship and one that mainly benefits the employer? How can a student tell the difference before they start?

2

Why do you think so many students accept unpaid internships even when research shows they may not improve job prospects?

3

In your country or industry, are unpaid internships common? Are they seen as normal, or do people question them?

4

The article mentions that unpaid internships create disadvantages for people from lower-income backgrounds. What practical steps could companies or governments take to make internships more equitable?

5

Some organisations offer academic credit instead of pay. Do you think academic credit is a fair alternative to a salary? What are the advantages and disadvantages?

6

The White House began paying its interns in 2022. What message does this send to private companies? Do you think government bodies have a responsibility to set an example?

7

When, if ever, do you think working without pay can be a genuinely good opportunity rather than exploitation? What conditions would need to be in place?

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