U.S. companies are benefiting from a huge pool of unemployed workers who are willing to work for free to gain experience. The use of unpaid labor has increased substantially during the recession. Federal regulators are warning that if the pattern continues any recovery in the labor sector will be further pushed back. In an effort to pursue the integrity of the labor sector, federal regulators have been considering tighter control over the policies governing the application of unpaid labor by U.S. companies. Article resource – Trend of unpaid labor threatens to further undermine job market by MoneyBlogNewz.
People will work for free for a job
College graduates aren't the only ones trying to get unpaid internships right now. There are several seasonal workers starting to join the about 14 million unemployed while only about one sixth of them have jobs. It is simple to figure out that workers are being exploited in all areas where they’re working for free to hopefully get a paying job by simply going on to Craigslist even though you will find unpaid labor official statistics. For an employee, the experience and references of the job are sometimes worth it. For the businesses though, sometimes it isn't worth getting someone for free who cannot do anything you need done. Unpaid workers are not easy to handle while paying an employee is easier sometimes.
Many upset about unpaid internships
The rise of illegal unpaid labor in the aftermath of the recession has elevated red flags with the federal government. A report was issued last April by the Economic Policy Institute. “Not So Equal Protection — Reforming the Regulation of Student Internships,” was what it was called. The point of the report was to get unpaid internship regulation on a federal level. In accordance with the institute, current regulations controlling unpaid internships must be reformed, not only for the protection of unpaid workers, but to maintain a healthy labor market and prevent any further decline in wages, which have been sliding for 40 years. In the report, the institute contends that the present lack of clear regulations exposes unpaid labor to workplace discrimination and encourages businesses to replace paid positions with unpaid internships.
Unpaid labor regulations
Despite the institute’s call for more government regulation, federal and state rules require that workers must be paid the minimum wage and overtime. Unpaid internships are okay sometimes. Companies have to follow the Fair labor Standards Act though. An internship can't replace a paid position while benefiting the intern more than the company according to the FLSA. Back pay is required when a company is caught doing this. The company also has to pay $1,100 per violation and all of the damages. Companies that make less than $500,000 in revenue is considered a small company to the FLSA and do not have to follow the rules. The FLSA exemption is forfeited by a business if it does interstate commerce as simple as taking credit cards and calling another state.
Information from
Fortune
management.fortune.cnn.com/2011/03/25/unpaid-jobs-the-new-normal/
Inc.com
inc.com/news/articles/2010/04/what-unpaid-interns-could-cost-you.html
The Hoya
thehoya.com/news/interns-pick-experience-over-pay-1.2124349
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