Recent allegations have been brought against many top employers for failing to comply with internship policies. Internships are seen as a necessary part of entering the workforce and many organizations value the extra help they receive, but managers need to be aware of Fair Labor Standard Act and U.S. Department of Labor policies regarding these temporary hires.

Many employers purposely misclassify workers to avoid minimum wage and overtime requirements, however not paying employees or interns for their time and attendance is in violation of FLSA standards. The Billings Gazette also pointed out that a person "cannot simply agree to be an intern and waive his or her right to receive the minimum wage and overtime," and offered the criteria for an internship. An example of the criterion would that the intern has to gain more educational and professional benefits than the employer gains in the person's services.

If one of the guidelines is not met, at minimum, the intern is entitled to at least minimum wage. The company is obligated to make sure their hiring and payment practices comply with the DOL's laws.

The Washington Post stated that unpaid internships are an important part of the modern business world, but substituting interns for entry-level employees and denying them proper pay has legal implications and also spreads the word that the company does not value a well-managed workforce.

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