I recently read some blog posts by HN frequenters about the work they have their unpaid interns doing. I don't believe it's legal to have them doing that work without pay; if you treat an intern like an employee, you have to pay them, or you're violating both federal and state labor laws.
Just a reminder.
http://www.startupcompanylawyer.com/2010/04/15/can-a-califor...