Does a student have to be compensated for work?

[adamseyller]

As part of a business class project several questions regarding labor laws that aren't exactly defined anywhere (or at least not easily accessible to the average schmuck with a laptop) have come to my attention.

In this scenario a person, lets say a student at a university, is looking to get career experience in their related field of study. The student gets in contact with a local small business and agrees to help out with a small project, lets say for an example a market research project. The student and company both understand the company cannot afford to pay the student for the work, but the student helps out anyway because the student is able to use the experience in their resume and gain insight on the field. The company also does not promise a job in the future and there is no real immediate consequence to not completing the project, other than the fact that it wouldn't entirely look professional on the students part if they didn't complete it.

In what ways would this be unlawful if any, and would the student in the scenario have to be compensated at all even though the student agrees to no pay,no promised job, and no legal obligation to the project?

 

[adjusterjack]

That scenario might or might not qualify as an "unpaid internship" under federal law.

Here are the details from the US DOL:

https://www.dol.gov/whd/regs/compliance/whdfs71.pdf

Your (unnamed) state may have other laws regarding unpaid internships.

 

[cbg]

I don't do homework.

There is plenty of information about your scenario available for a student who knows how to use Google.

 

[eerelations]

If the work project is sponsored by the university and the student working on the project will be graded by the university on his/her work on the project, then the employer is not required to pay the student. However, the employer will be required to monitor the student's work on the project, and provide a full report on said work to the university.

If, however, the work project is not sponsored by the university and is rather a project dreamed up between the student and the employer, then the student must be paid at least minimum wage for the hours he/she works on said project. The law doesn't care if the student doesn't want to be paid for this work; the law dictates that the student must be paid for this work under this scenario. The onus is on the employer to pay the student.