Is it acceptable to offer academic credit in lieu of pay for an internship?
Although the PBT does not explicitly state that academic credit is compensation for the internship, this perception has been an unintended consequence of its inclusion as Factor #3 in supporting an unpaid classification for the internship. This implies that academic credit functions as a type of compensation. Indeed, some employers justify unpaid internships because students “are earning class credit instead.” However, in nearly all cases, students purchase those academic credits, and compensation for labor cannot be purchased by the laborer. Therefore, NACE takes the position that academic credit alone is insufficient as compensation and should not be used to justify an unpaid internship. NACE stresses that being compensated should not preclude students from earning academic credit. There is no reason why a student cannot earn credit, which they purchase and work toward by accomplishing academic goals, and monetary compensation for the labor they contribute to their internship employer.
Should career centers post unpaid internship positions?
Absent any law precluding unpaid internships, this is a policy decision for the institution and career center. NACE takes the position that, while unpaid internships can be valuable, they are a source of inequity; therefore, institutions and career centers are encouraged to consider how to reduce the practice until such time as unpaid internships can be ended.
To determine whether to post the unpaid internship or not, career centers should ask: Will this unpaid internship provide an irreplaceable stepping-stone for this student in reaching their ultimate career goals? In answering the question, career centers should weigh the value of the unpaid internship position in its ability to help students explore career paths, develop professional networks, and confirm their career goals against the amount of time and labor required for the internship. NACE encourages career centers to have very high expectations for the unpaid internships they choose to post.
What can career centers do to support students who pursue unpaid internships?
NACE encourages career centers to help organize various funding streams that can be used to help support low- and unpaid internships. Federal work study funds, funds available pursuant to the Workforce Innovation and Opportunity Act (WIOA), institutional stipend funding, and local chamber of commerce funding are options to consider to eliminate unpaid internships.
According to results detailed in the NACE 2022-23 Career Services Benchmark Report, about 35% of colleges and universities reported offering a stipend program for low- and unpaid internships, but only 2.1% provide the stipends for any and all unpaid or low-paid internships; most of the programs require the student to apply for competitive and limited funding.
Although institutions administer these programs variably, they are generally a quick and efficient way of getting money into interns’ hands. These stipend programs should be supported by the government and industry, not just donors and institutions of higher education as is most common now; they should be extended to more students and increased in amounts.