Navigating Unpaid Internships: A Comprehensive Guide for International Students

Unpaid internships have become a prevalent feature of early career development for university students, offering valuable real-world exposure and resume-enhancing experience. For international students in the U.S., understanding the requirements and regulations surrounding unpaid internships is crucial to maintaining their legal status and maximizing their opportunities. This article provides a comprehensive overview of these requirements, focusing on F-1 and J-1 visa holders.

Understanding the Basics

An internship, whether paid or unpaid, is an experiential learning opportunity that integrates academic knowledge with practical experience in a workplace setting. It allows students to develop professional skills through defined projects with clear objectives. However, the distinction between a legitimate unpaid internship and disguised employment is critical, especially for international students.

The Role of Work Authorization

A key point to remember is that whether an international student in F-1 or J-1 status requires "work authorization" is not solely determined by whether the student is paid. An international student may need proper F-1 or J-1 work authorization even for unpaid work.

F-1 Students

F-1 students are generally not permitted to engage in employment without proper authorization. The primary avenues for work authorization are:

Curricular Practical Training (CPT): This allows students to participate in employment or internship opportunities directly related to their major field of study. It's an F-1 benefit that allows eligible students with proper authorization from International Student and Scholar Services (ISSS) to participate in employment or internship opportunities that are directly related and integral to the major field of study listed on their I-20. CPT is meant to enhance a student’s academic program by giving them practical work experience in their field of study. It is not intended for regular, ongoing employment. Since CPT requires defined academic objectives agreed upon by the student and their department/course instructor prior to the start of the internship or employment, it is approved on a semester-by-semester basis. CPT cannot be authorized after a student graduates. Caution: Students must obtain an updated I-20 with CPT authorization on page 2 BEFORE beginning their internship or employment. CPT requests must first be reviewed and approved by the academic department and then by ISSS. This takes time. Students should submit their CPT request through myIO at least 3 weeks before their requested internship start date. CPT can NEVER be back-dated.

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- Eligibility:
  - Be in valid F-1 status.
  - Be in good standing with the university.
  - Have an employment/internship offer in a position directly related to their UT Austin major.
  - Have completed two consecutive long semesters prior to the requested employment start date. Most F-1 students will need to have completed at least two long semesters beginning from the program start date on their most recent valid I-20. Students approved for a change of status via application to USCIS within the United States can count semesters spent studying full-time prior to the change of status approval towards the two-semester requirement. Students who transferred their SEVIS record to UT Austin can count semesters spent studying full-time prior to the transfer towards the two-semester requirement. Exception to the two-semester rule: graduate students enrolled in a program that requires immediate participation in an internship are eligible to apply for CPT in their first semester. Additionally, sponsored students who utilize third-party billing services through Texas Global must first obtain written approval from their program sponsor prior to submitting a CPT request.
  - To be eligible for CPT, the employment / internship must:Be directly related to the major field of study listed on the student’s I-20. Be an integral part of the student’s academic program. This means the employment must meet ONE of the requirements below: Course Completion CPT: The employment must be a required component for a course the student enrolls in. The department must confirm that they approve this course enrollment for CPT. Possible courses: Course offered by the academic department. Generally, acceptable courses contain words such as the following in the course title: internship, practicum, independent study. Thesis/Dissertation course offered by the academic department. Such a course is only acceptable for CPT purposes if the internship work is required for the completion of the thesis or dissertation. EXP 000/080 course offered by Career Success. The student is responsible for registering for and completing the course, and the department must confirm that they approve of the student taking this course for CPT purposes. Degree requirement CPT: The employment must be a required component of the degree program, meaning ALL students in the program must complete an internship. Note: there are only a few degree programs that fall in this category.
- CPT Course Enrollment and Start and End Dates: CPT is authorized on a semester-by-semester basis. CPT authorization follows the dates of the official UT Austin academic calendar. Internships spanning two semesters will require two separate CPT authorizations (one for each semester). Most CPTs (with the exception of Degree Requirement CPT) require course enrollment.
- How To Apply for CPT: Step 1: Consult your Academic Advisor Consult your academic advisor about the academic basis of your CPT-whether you will pursue Course Completion CPT or Degree Requirement CPT. Very few degree programs at UT Austin require the completion of an internship, so most students will need Course Completion CPT. If you will engage in Course Completion CPT, determine which course you will take and in which semester. Step 2: Ask Your Employer to Complete the Employment Verification Form Once you obtain an employment offer, ask your employer to complete the Employment Verification Form. (For unpaid internships/training, ask the organization providing the training opportunity to complete the Unpaid Training/Internship Verification Form.) To avoid CPT delays or denials, we strongly recommend that you use our Employment Verification Form instead of an offer letter. If for any reason your employer cannot complete our form, then request a letter from them - printed on company letterhead - with ALL the following information (missing information will lead to CPT delays or denials): Your full name Your UT EID (optional, but highly recommended) The employer/company name Whether you will be working on-site or remotely The physical work site address where you will conduct your job (if you will be working remotely, then provide the site address where your supervisor works) Your specific start date (mm/dd/yyyy) Your specific end date (mm/dd/yyyy) Your job title A brief job description Maximum number of hours you will work per week (Note: If you select 20 or fewer hours, you will be authorized for "part-time" CPT and will not be authorized to exceed 20 hours of work in any week.) Your supervisor's full name, job title, and signature Step 3: Submit your CPT request through myIO Once you have your completed Employment Verification Form (preferred) or employment letter, log into myIO > F-1 Practical Training > CPT Request. Fill out and submit the form. If your internship will span two semesters, you must submit a separate request for each semester you will be working. Step 4: Allow sufficient time for approval Once you submit your CPT request, it will be routed to your department for approval. Once your department approves your request, it will be routed to ISSS. ISSS will take 10 business days to review your request and either approve it or follow up with you if additional information or documentation is needed. Please allow a minimum of 3 weeks for CPT approval. Requests starting within 3 weeks will automatically be prioritized. However, such requests may not be authorized by your proposed start date if there are problems with the CPT request (e.g., the employment letter is missing required information) To avoid this, be sure to submit your CPT request at least 3 weeks in advance of your proposed start date. Step 5: Only begin working once you have your CPT I-20 After your CPT has been approved by ISSS, you will receive a new I-20. Page 2 of the I-20 will list your CPT employer and your approved CPT dates. You can ONLY begin working for the employer listed on page 2 when you have received your CPT I-20 and the approved CPT start date has been reached.
- Part-Time and Full-Time CPT: Students who meet the CPT eligibility criteria explained above can request part-time or full-time CPT during any semester of their program. Part-time CPT is defined as up to 20 hours per week. Part-time CPT can never exceed 20 hours per week in any given week. Full-time CPT is defined as over 20 hours per week.
- Extending within the same semester: See chart above to verify the last possible CPT date you can request based on the semester and your course enrollment.
  
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Optional Practical Training (OPT): OPT allows students to work in a job related to their degree program. It can be used during or after the degree program.

J-1 Students

J-1 students have options such as:

Employment Related to Scholarships, Assistantships, and Fellowships: This employment requires written approval by the university DSO in advance of commencement of employment. If the J-1 program is sponsored by an agency other than the school, then the student will need to obtain from that agency written authorization for employment.
Employment Pursuant to Academic Training for J-1 Students and Post-Docs: Most J-1 students are eligible for academic training during or after completing their education in the United States (18 months for most J-1 students; up to 36 months for post-doctoral research).

Other Visa Categories

Students using "dependent" visas (for example, dependents of spouses or parents who are in the United States in a work-authorized visa status, such as H-1B, E-1/E-2/E-3, L-1, O-1).

Unpaid Internships and CPT

Even if the internship is unpaid, ISSS strongly recommends obtaining CPT authorization prior to beginning the internship. visas or immigration benefits. Here are a few factors that could classify an internship as “employment,” even if it is unpaid: The position is normally paid, but an exception is being made for the F-1 student to do it without pay. There is any form of compensation (not limited to wages). The internship provider is benefiting from the student’s labor.

Whether an F-1 student requires work authorization is not governed by whether the student is paidAn F-1 student needs work authorization even for unpaid work. Therefore, an F-1 student should obtain either CPT or OPT work authorization to engage in unpaid work.

When is Work Authorization Not Required?

Only if the work is properly "volunteer" unpaid work under the Department of Labor rules can an F-1 student perform work without work authorization. To be eligible to gain experience without work authorization there may be no compensation of any kind, which could include meals, transportation, etc.

Department of Labor (DOL) Guidelines and the "Primary Beneficiary" Test

The DOL has established guidelines to determine whether an unpaid internship is legitimate or should be considered employment. The DOL uses a “primary beneficiary” test. This test examines the “economic reality” of the intern-employer relationship to determine which party is the “primary beneficiary” of the relationship. If the primary beneficiary is the intern, then the work is properly unpaid. If the primary beneficiary is the company, then the work should be paid.

The DOL Wage and Hour Division has established a seven-factor test for determining whether work for a private company is legitimately volunteer training (for which no pay is required, and, for international students, no work authorization is required); or whether it is employment (for which pay and work authorization are required).

Here are the guidelines:

The extent to which the intern and the employer clearly understand that there is no expectation of compensation.
The extent to which the internship provides training that would be similar to that which would be given in an educational environment, including the clinical and other hands-on training provided by educational institutions.
The extent to which the internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit.
The extent to which the internship accommodates the intern’s academic commitments by corresponding to the academic calendar.
The extent to which the internship’s duration is limited to the period in which the internship provides the intern with beneficial learning.
The extent to which the intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.
The extent to which the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship.

These guidelines help determine whether the intern is actually an employee and thus entitled to wages according to the Fair Labor Standards Act (FLSA).

Even with an increase in unpaid internships, some students and employers still have major concerns in opting for one. Their major concern includes: "Is it acceptable to engage in unpaid internships during the course of study?" It is an absolute yes. But there are certain requirements both employers and students has to verify before engaging in one.

Risks of Unauthorized Employment

If an unpaid internship should have been a paid internship under DOL rules, then the student must be "employment authorized" in order to undertake the internship. If the international student undertakes such an internship without first obtaining proper work authorization, then the student will violate status because the student has engaged in unauthorized employment. This renders the student deportable from the United States.

Recommendations for International Students

Consult with your DSO: Discuss your internship plans with your Designated School Official (DSO) at the international student office. They can provide guidance on work authorization requirements and ensure you maintain your legal status.
Prioritize work authorization: Obtain the necessary work authorization (CPT or OPT) before starting any internship, even if it's unpaid.
Understand DOL guidelines: Familiarize yourself with the DOL's guidelines for unpaid internships to ensure the position is legitimate and does not violate labor laws.
Document everything: Keep detailed records of your internship, including the job description, hours worked, and any training received. This documentation can be helpful if you need to provide evidence of your work experience for future immigration benefits.
Be cautious of for-profit companies: Unpaid internships at for-profit companies are subject to stricter scrutiny under DOL rules. Ensure the internship meets all the criteria for being legally unpaid.
Avoid displacing paid employees: The internship should provide you with significant educational benefits and complement, rather than displace, the work of paid employees.

Distinguishing Between Volunteering and Unpaid Internships

Please note that there is a difference between volunteering and engaging in an unpaid internship. As explained above, volunteering refers to donating time with an organization whose primary purpose is charitable or humanitarian in nature, without renumeration or any other type of compensation. F-1 and J-1 students are free to engage in volunteer work as long as it meets the above criteria. For example, it would be okay to volunteer at a local homeless shelter, charitable food pantry, or American Red Cross. Unpaid internships, on the other hand, do not usually qualify as "volunteer" activity.

Practical Steps for International Students

Before doing any work, you should ask what paperwork the organization requires from you to start your unpaid internship.
Consult your academic advisor about the academic basis of your CPT-whether you will pursue Course Completion CPT or Degree Requirement CPT. Very few degree programs at UT Austin require the completion of an internship, so most students will need Course Completion CPT. If you will engage in Course Completion CPT, determine which course you will take and in which semester.
Once you obtain an employment offer, ask your employer to complete the Employment Verification Form. (For unpaid internships/training, ask the organization providing the training opportunity to complete the Unpaid Training/Internship Verification Form.)

Consequences of Non-Compliance

Engaging in unauthorized employment can have severe consequences for international students, including:

Violation of F-1 or J-1 status
Deportation from the United States
Difficulty obtaining future visas or immigration benefits

Resources and Further Information

International Student and Scholar Services (ISSS) at your university
U.S. Department of Labor (DOL)
U.S. Citizenship and Immigration Services (USCIS)

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