TII Criticizes U.S. DOL FOR ‘ENDING INTERNSHIPS IN AMERICA’ Obama Administration Turns Its Back on the Youth, Student Labor Market

and Small Businesses Seeking a New Generation of Entry Talent

MAY 25 - PHILADELPHIA PA – In The Internship Institute’s conversations across the country, two relevant concerns have emerged about the future of internships and the future of student employment in America - and neither report from the field are good indicators for our country. First, the U.S. Department of Labor (DOL) has effectively told youth and students – the very core of the Obama “change” movement that got him elected – internships are effectively over. In its over-zealousness to “regulate” the corporate use of youth and students, the DOL has put a chill on the future of internships.

Second, as our economy still works through major transformations – and according to highly regarded economists the Nation’s recovery is still not out of the woods yet – youth and students in America face the bleakest job future since the 1970s. Unless internships are revitalized and even embraced by the Obama Administration – America could easily resemble Germany and France in 10 years or less with millions of unemployed youth - buried in debt with limited earnings potential to ever recover and with good reason to be increasingly anxious about their futures.

To recap, the DOL’s recent crackdown on American businesses reasserts an antiquated system of compensation exemption that is guided by a 63 year-old “Six-Pronged Test.” These guidelines are counterintuitive to making internships beneficial for students and employers alike. As such, the DOL is essentially saying that any for-profit company with an unpaid internship of any real mutual value is probably breaking the law.

“Relying on obsolescence to address the urgent needs of modern times is short-sighted, grossly irresponsible and flat-out reckless,” states Matthew Zinman, founder of The Institute. “They basically decimate the shared value proposition and benefits to all parties. What the DOL describes as ‘productive work’ is laughable and relegates internships to job shadowing, which nearly eliminates an employer’s motivation to provide such opportunities in the first place. If an employer isn’t gaining an advantage, chances are, the student is doing less productive work tasks, which is typically why they are willing to forego pay as well as for the opportunity to ‘earn’ a job.”

The Internship Institute – in communicating with over 4,000 individuals across the Nation – as well as employers from small entrepreneurial firms to major global corporations – has learned that unless and until there is appropriate planning and support around internships for youth and students to gain “real-world” experience as scientists, engineers, researchers, creative talent, and innovators – then the very Presidential Administration that promoted “change” has effectively closed the door to its own powerful constituency for that change.

Indeed college students are even more adamant about the restrictions, summarized by one, “What’s

the point of working for free to get experience if all I get to do is watch? I may as well tap the online [career]

sites to get the same benefit and flip burgers to make an extra buck. I have college loans to pay off.”

“So here again it’s evident that some bureaucrat sitting in a cubicle in Washington DC decided to throw

the baby and the bath-water out while not understanding the unintended consequences to America’s youth

and students,” continued Zinman. “They essentially lit the fire, pulled the alarm, slipped out the back door and

left it for everyone else to extinguish.”

As for the letter of the law, Zinman bluntly states, “The indicators are clear enough: if President

Obama allows the Department of Labor’s position to remain unchallenged and unchanged – then

purposeful internships in America will be terminated, finished, cooked.”

Zinman acknowledges, “DOL guidelines aside, we know that there are always bad apples –

organizations and people that will exploit free talent whenever they can. But an overwhelming majority

of CEOs and founders of entrepreneurial ventures and globally-recognized companies got their starts as

interns and they recognize the importance of a proving ground for new talent as well as testing that

talent for future, long-term job offers. That’s how it should be.”

ABOUT TII The Internship Institute is an action-oriented non-profit charity dedicated to bridging the gaps between graduate skills and market needs by assuring the quality and integrity of the internship experience for students, supervisors, mentors and employers alike. TII advocates that work learning opportunities are essential to building a skilled workforce, preparing today’s emerging professionals for gainful employment and fostering America’s economic revitalization and global competiveness. TII puts its actions towards promoting new opportunities for students across America through a variety of digital and printed materials, programs, and initiatives. CONTACT: Matthew Zinman, mzinman@internshipinstitute.org Direct Phone: 215-870-9700