http://www.washingtontimes.com/weblogs/watercooler/2010/apr/10/obama-interns-me-not-thee/At a time when the unemployed are concerned about not only money but also loss of job skills, the Obama administration's top law enforcement officer at the Labor Department, M. Patricia Smith, is looking to come down on companies who give unpaid internships to young individuals. A Washington Times editorial on April 7 stated:
"Basic economics teaches that if the price is raised, demand falls. If companies have to pay wages, they will take on fewer interns. If these youngsters were actually benefiting companies more than it costs to train them, companies would pay them. Profit-seeking companies compete against each other for employees. If untrained students were such valuable workers, firms would gladly offer money to beat out the competitor next door to get them."
The New York Times reported that Nancy J. Leppink, the acting director of the department’s wage and hour division said, “If you’re a for-profit employer or you want to pursue an internship with a for-profit employer, there aren’t going to be many circumstances where you can have an internship and not be paid and still be in compliance with the law.â€
The unemployment rate among teenagers and college students is at 26 percent reports Red State's Erick Erickson, and if companies are forced through government regulation to pay these interns, companies will look to re-work their budgets to be in compliance, and less students will be offered internships. This means less students can be brought in and gain valuable experience in a work place environment. The federal government is attempting to change the entire point of gaining work place skills and create yet another under-served demographic of victims falling prey to private sector companies.
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