As far as I can tell, from a quick google, they haven't been ruled illegal yet. http://www.lawyersmutualnc.com/blog/floodgates-open-on-unpai... I think it comes down to choice. I think the reason a lot of people take these unpaid internships is because they think they can get their foot in the door, even if they are just doing menial labor. At some point people need to recognize when an internship is going to be beneficial for them, and when it is just beneficial for the employer. When you are actually in a position to be taken seriously unpaid internships can be a great way to network and get to know people (I took one working for a downtown planner working on a town counsel once for this reason). But if you are just running coffee, just being around people isn't going to help the people you are trying to network with don't take you seriously.