Interns present a conundrum for employers and the courts about how they are to be treated. Under the Fair Labor Standards Act , the term “employment” is used in a very broad sense that can be interpreted in several different ways.

The phrase in this vein is “suffer or permit to work” as part of the definition of employment. Non-exempt and covered individuals defined in this way must be compensated for the services they provide to an employer. In the private sector, most internships involving for-profit companies are considered employment. In this case, these interns must be provided overtime compensation and a minimum hourly wage.

In some situations, those who participate in for-profit internships in the private sector can do so without being compensated. Interns who get training for an educational benefit don’t tend to qualify under the “suffer or permit to work” phrasing.

In order to make this determination, six factors must be considered: (1) whether the internship experience benefits the intern; (2) whether the intern works under the close supervision or existing company staff; (3) whether the internship is similar to training that is similar to that given in an educational environment; (4) whether the employer and intern are both clear on wages not being included in the benefits offered by the internship; (5) if the employer receives no direct benefit for the employment of the intern as an immediate advantage; and (6) if the intern will not be entitled to a job at the end of the internship.

A recent case demonstrates that not all unpaid internships are legal, however. A lawsuit against Fox Searchlight concluded with a judgment that interns were unpaid in an illegal fashion. All of the legal requirements listed above are extremely difficult to meet when it comes to unpaid internships.

This is a crucial possible wave of lawsuits because over half of all college internships are already unpaid. College students especially may not be aware of their rights and what to do when a violation has happened. The responsibility for determining whether an unpaid opportunity is fair and legal falls on the student, though.

Thankfully, students may be able to tell what a fair opportunity is by visiting a government website to take the unpaid intern test. The government has outlined the stipulations of internships that are exempted from FLSA protections, and it’s in a student’s best interests to educate him/herself beforehand. A good guideline to remember is that in most cases, the internship has to be totally for the benefit of the student and not the employer. Rarely is this the case.

When employers fail to understand the requirements, they expose themselves to major lawsuit risks and may face difficulty hiring future interns. In order to meet the requirements of the internship rule, the opportunity should be structured more like vocational training so that interns reap the benefits.

In reality, a properly organized internship is in some ways a burden to the employer since the company bears the responsibility for creating the entire program and putting together courses and training for the intern. This requires a lot of work on their part, especially when you factor in that to meet the legal unpaid internship standards, the employer can’t be benefitting significantly from the experience if the intern does not receive compensation.

There are some specific signals to watch out for if you’re an intern. If you’ve accepted any job where you are writing and publishing stories with your name in the byline and no pay – that could be an illegal situation. Extremely long hours are another red flag, but you can learn more by doing some research on your own. If you feel like you participated in an internship without pay where it was legally deserved, you can file an official complaint with the Department of Labor or talk to a lawyer.

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