Would you be willing to work for no pay?

Some of people would, especially those seeking to gain experience while searching for a job. CNN Money reports that unpaid jobs are becoming more common. Struggling job-seekers are willing to give up a regular paycheck for the experience gained through unpaid internships.

But this raises the question of the legality of unpaid work.

According to the U.S. Department of Labor, unpaid internships are legal. But the internship must follow six guidelines, including ensuring that the internship primarily benefits the intern and does not displace any current employees.

The U.S. Department of Labor has hired 250 additional investigators to make sure that companies are following regulations when it comes to internships and not taking advantage of the free work. If a company is found to be treating an unpaid intern as an employee, they’ll have to pay back wages and a penalty of up to $1,100.

Can a company survive on interns alone for certain positions? Perhaps. But it’s possible that more time will be spent training and guiding an intern, a task assigned to paid employees.

Some companies are also finding it difficult to rely on interns, according to the article. If an intern is unhappy with the position, he doesn’t have to fret over quitting because he won’t be losing a paycheck by doing so.

So while an unpaid internship may be a good solution for job-seekers wishing to gain experience and references, it may not always be the best choice for a company.

What do you think? Is an unpaid internship something that could work for you?

In today’s Roundup, learn how to use a Roth IRA to build an inheritance, 20 things to do with a tax refund, what to do with an inaccurate address on a credit report, and more!

And don’t forget to tune into the blog all week for Credit Karma Tax Week! We’ll be giving tips and tricks all week, plus answering your tax questions.

Personal Finance News

• 5 critical items for any budget. Budgeting is like baking a cake: Sometimes it’s what you forget that leaves a bad taste in your mouth. If you’ve resolved to get a handle on your money, a budget is the first order of business. Bankrate
• How to Use a Roth IRA to Build an Inheritance. If current income restrictions associated with Roth investment retirement accounts (IRAs) prevent you from using one for your own planning purposes, chances are you are in the asset bracket that needs to think hard about not just investment management, but future estate planning as well. Yahoo! News
• 20 Things to Do With a Tax Refund. Tax refunds are sort of a forced savings account for many people. While it makes sense to adjust witholdings to minize a tax refund, there are a number of useful things to do with one besides blow it on a new television. Frugal Dad
• You Need To Cut Your Spending. It Sounds Painful. Now What? You’ve realized (finally) that you’re in a precarious financial situation. You’re spending more than you earn – sometimes quite a bit more. You’ve racked up a fair amount of debt. Now, you’re seeing that some changes are going to have to happen in your life, but those changes sound utterly painful. The Simple Dollar
• Should I Pay For Bankers’ Mistakes? I’m facing an economic dilemma, and I want your advice. I’m from Iceland. On April 9th, my country is holding a referendum to decide whether to pay back the $5 billion one of our bankrupt banks owes to people in the Netherlands and the U.K. How should I vote? Planet Money

Credit Report & Credit Score News

• How long will mortgage troubles affect your scores? For the first time, the creators of the leading FICO credit scoring formula have revealed how long it may take you to recover from mortgage delinquencies, short sales and foreclosure. Ask Liz Weston
• What to do With an Inaccurate Address on a Credit Report. It’s important for consumers to review all their credit reports in order to identify any questionable items, such as those you’ve discovered. While those addresses most likely aren’t a reason to worry, their appearance on your reports should prompt you to take action. Fox Business
• Debtadviser: Debt dropped from credit report still owed The rules for collecting a debt and the rules for reporting a debt are not the same. In fact, they are totally different.. Scripps News
• Establishing Credit Will Be Harder For Non-Working Spouses. In one perhaps unintended consequence of the Credit CARD Act, it will become more difficult for non-working spouses, often women, to get credit cards on their own. credit.com
• Americans earn ‘D’ on how credit scores work. Americans don’t fully understand how their credit scores are determined or how the scores may be used, according to a survey by the Consumer Federation of America and VantageScore Solutions. The Detroit News

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