In my experience, especially with smaller companies, there's a growing trend where tech challenges given during the hiring process are really just requests for free work. These companies mask their request as a "tech challenge" or "task" to assess a candidate’s coding ability, but in reality, they’re asking candidates to write production ready, or nearly production ready code that can be used directly in their product.
Companies Using Candidates as Free Labor
Whether it's building a feature or a core part of their system, candidates end up working on something that contributes directly to the company’s success.
The allure of a job offer keeps candidates engaged, but in reality, they’re doing real work without proper compensation. The promise of a job is often dangled in front of them as motivation, but the lines between a genuine challenge and free work become blurred.
Spotting the Red Flags
How can you tell when a tech challenge is crossing the line into free labor? Here are some common signs to look out for:
The 'Cool Idea' Approach
One common tactic companies use is presenting a "cool idea" as part of the tech challenge. They’ll introduce an exciting app or platform concept that seems fun to build, knowing many developers will be eager to work on something interesting. Developers are naturally drawn to engaging projects, and companies exploit this by framing the challenge as a fun task. However, the challenge often aligns perfectly with what the company needs in their product. In the end, you're solving real business problems or building features that they can immediately benefit from, all under the promise of a job offer that may never come.
The 'Open-Source' Approach
Another tactic I’ve personally encountered is when companies approach me because I’m an open-source lead developer and maintainer. Somehow, they interpret that as, “I must be fine with doing work for free - for them!” They’ll play the open-source card, emphasizing how much they care about giving back to the community and how their project aligns with open-source values.
But here’s the catch: when they present the tech challenge, they might ask you to submit your work in a private repository. That’s a huge red flag. If they're so committed to open source, why is the challenge code hidden away in a private repo? The only plausible explanation is that they intend to use your code in a way that benefits them, without transparency or acknowledgment, which completely contradicts the spirit of open source.
Scope and Size of the Body of Work
Another clear sign is the scope of the work they ask for. If a company is asking you to code an entire infrastructure, build a full-stack app (front end, back end, and database), or complete any large-scale project as part of the tech challenge, that's a strong indication they are trying to get free work. It’s highly suspicious when a challenge involves such a large body of work because it’s more than necessary for skill evaluation.
However, companies have become clever - sometimes they’ll split the project between four or five candidates, each tasked with completing a different part of the system. This way, they still get a full product built without paying for it, making it harder for any single candidate to recognize they’ve been exploited.
Complexity Is Not a Factor
Don’t be fooled by thinking that only complex or highly involved tasks are part of this scam. I used to believe the same, but that’s not the case. Complexity is not a factor. In fact, companies will sometimes ask for the simplest code imaginable and still use it in their production. Whether the task is a small feature or a full application, they can still benefit from your work. Even basic tasks, like writing a simple API or fixing minor bugs, can be part of their strategy to extract free labor. Just because a task seems easy doesn’t mean it isn’t valuable to the company.
Biggest Factor: Can Be Used As-Is
The most critical factor to look out for is whether the code you’re asked to write is production-ready or nearly production-ready. If the task involves writing code that could be immediately integrated into the company's live product or service, that’s a massive red flag. Any time the tech challenge involves creating something that feels like a real feature or system that they could use as-is, you’re likely being taken advantage of.
If you hear things like, "Let us think about what we can give you as a challenge," it often translates to "Let us check our backlog for outstanding tasks." This indicates they’re looking for something they need done and are planning to use your work to solve real problems in their codebase, rather than merely testing your skills.
Why Do They Do It?
The reason is simple: to save money.
I’ve fallen for this trick once or twice myself. One time, a company caught my attention with both a cool idea, an open-source project, and to top that - the tech challenge was fun. They asked for something I had already implemented in another project of mine, which was open source at the time. It came like a breath of fresh air back then, I knew exactly how to implement it and how long it well take, and I was genuinely excited to take on the challenge. That excitement should have been a red flag.
It didn’t even occur to me that companies would pull this off for something so straightforward. But recently, it was brought to my attention that even just four hours of work could save them hundreds of dollars - easily $400 or more. That's why they do it. It’s not always about complexity. Sometimes, they’re just looking to cut corners, and even small tasks can add up to significant savings for them. This realization made it clear to me that even the simplest challenges are often part of a much larger strategy to reduce costs at the expense of job candidates.
How to Handle Such Situations
I’ll be honest - I've not always handled these situations ideally. In the past, I often just walked away or avoided them altogether. Once or twice, I fell for the trick and proceeded to a tech interview. That’s when it became even clearer that the company wasn’t really looking for employees. The tech interview was structured to test memorization skills in a way that induces coder's block, creating reasons to disqualify candidates. It leaves you with a bad impression of the company, as it feels like they were never serious about hiring in the first place.
A better way to handle this
Just ask to be paid. If you notice signs that make you believe you’re being used for free work, call them out on it. Tell them that you’re aware of what’s going on and that their trick won’t work on you. Offer them a deal - say something like, “Sure, I can do that work,” but don’t call it a tech challenge if it’s actual work. Then, give them your pricing: whether it’s a milestone-based fee, an hourly rate, or a flat project fee, you have every right to ask for fair compensation.
Remember, you are not obligated to do work for free. Companies use the setup of making you the "applicant" to create the illusion that you need them. But that’s not the case - they need you! Stand up for yourself. The worst that can happen is that they back away, but that’s not because you did something wrong. It’s because they never intended to pay for the work in the first place.
If you've been in a similar situation and want to talk about how to handle it better, I offer premium & limited free mentorship sessions. Feel free to reach out, and we can discuss ways to navigate these challenges and protect your time and skills.
If you've fallen for this trick before, don’t be too hard on yourself. We’ve all been there at least once or twice. What’s important is to look forward, learn from these experiences, and be more cautious in the future. Use every such situation to stand up and say, “This won’t work.” By doing so, you might just deter companies from pulling this stunt as often. If more people refuse to work for free, these companies might eventually get the point and change their ways - or at least try this trick less frequently.