The Fair Labor Standards Act says unpaid internships are only permissible under certain conditions. The conditions include using the intern to do work that does not replace an actual employee and the internship must be an experience that is mostly educational.
The labor rules aim to protect the rights of eager interns who’ll do whatever it takes to get work experience–as well as to keep employers from farming out free work that should be given to a paid employee.
Fewer jobs and more unpaid internships are available giving employers an advantage as well as intern candidates who can afford to go without pay for a bit. This locks out low income individuals from important opportunities.
Modernize the FLSA to end exploitation of unpaid internships. This will create jobs.