Are Unpaid Internships Legal in California?

Unpaid internships in California are legal but only if they meet specific legal requirements. You must understand these rules before offering or accepting an unpaid internship.

This article explains when unpaid internships are allowed in California, what rules apply, and common mistakes to avoid.

Understanding California's Rules on Unpaid Internships

California follows strict laws to protect workers, including interns. The state uses both federal and state tests to decide if an internship can be unpaid.

These rules ensure that unpaid internships are educational and not a way for companies to avoid paying wages.

• The internship must provide training similar to what is given in an educational environment, helping you learn skills for a career.

• The internship should be for your benefit, not the employer’s, meaning the company should not gain immediate advantage from your work.

• You must not replace regular employees or do work that benefits the company directly without pay.

• Both you and the employer should understand that you will not receive wages for the internship.

These points come from the federal Fair Labor Standards Act and California labor laws, which work together to protect interns.

Federal Fair Labor Standards Act (FLSA) and Its Impact

The FLSA sets the main rules about unpaid internships across the U.S. California follows these rules closely.

The U.S. Department of Labor uses a six-part test to decide if an internship can be unpaid under the FLSA.

• The internship must be similar to training you would get in a school or educational program.

• The internship experience should mainly benefit you, not the employer.

• You should not replace regular employees or perform work that the company usually pays for.

• The employer should not get immediate advantage from your work during the internship.

• You and the employer must understand that you will not be paid.

• The internship should not guarantee a job at the end of the program.

If all these conditions are met, the internship can be unpaid under federal law, but California adds more rules.

California’s Additional Legal Protections for Interns

California’s labor laws are stricter than federal laws to protect interns and workers.

The state requires unpaid internships to be part of an educational program and limits how companies use unpaid interns.

• Internships must be tied to a formal education program or school credit to be unpaid legally.

• Employers must not use unpaid interns to perform routine work that would otherwise be done by paid employees.

• California law requires that unpaid internships provide meaningful learning experiences, not just free labor.

• Employers must comply with California’s wage orders and labor codes when offering internships.

These rules mean that many unpaid internships that do not meet educational standards are illegal in California.

Common Mistakes Employers and Interns Make

Many employers and interns misunderstand the rules about unpaid internships in California.

This leads to illegal unpaid internships and possible legal trouble for companies.

• Employers sometimes use unpaid interns for regular work, which is illegal and can lead to wage claims.

• Interns may accept unpaid work without knowing their rights or whether the internship is legal.

• Companies may fail to provide proper training or educational benefits, making the internship unlawful.

• Both parties often overlook the need for a clear agreement about pay and internship terms.

Knowing these common mistakes helps you avoid problems and ensures internships are legal and fair.

How to Ensure an Internship is Legal and Fair

If you want to offer or accept an unpaid internship in California, follow these steps to stay legal.

These steps protect both interns and employers from legal risks.

• Make sure the internship is part of a formal educational program or offers school credit.

• Provide clear training and learning experiences that benefit the intern’s career development.

• Do not use interns to perform work that regular employees do or that benefits the company immediately.

• Have a written agreement explaining that the internship is unpaid and describing its educational nature.

Following these guidelines helps create a legal and valuable internship experience in California.

Enforcement and What Happens if Rules Are Broken

California’s labor agencies actively enforce laws protecting interns and workers.

If an unpaid internship violates the law, companies can face penalties and be required to pay back wages.

• The California Labor Commissioner’s Office investigates complaints about unpaid internships and can order payment of wages.

• Employers found violating the law may face fines and legal action from state agencies or interns.

• Interns can file claims to recover unpaid wages if their internship was illegal.

• Companies risk damage to their reputation and legal costs if they ignore internship laws.

Understanding enforcement helps you see why following the rules is important for everyone involved.

Alternatives to Unpaid Internships in California

If an unpaid internship is not legal or suitable, there are other options to gain experience.

Paid internships and volunteer opportunities can offer valuable learning without legal risks.

• Paid internships comply with wage laws and provide fair compensation for your work.

• Volunteer work is allowed only in certain nonprofit or charitable settings and must meet specific rules.

• Some companies offer apprenticeships or training programs that pay while teaching skills.

• Online courses and certifications can also build your skills without needing an unpaid internship.

Exploring these alternatives can help you gain experience legally and safely in California.

Conclusion

Unpaid internships in California are legal only if they meet strict federal and state rules focused on education and training.

You must ensure the internship is part of an educational program, does not replace paid work, and benefits your learning. Employers and interns should understand these rules to avoid legal problems.

By following the law, you can have a safe and valuable internship experience in California.

FAQs

Can unpaid internships be offered in any industry in California?

Unpaid internships can be offered in many industries but must meet legal standards. They are common in education, arts, and nonprofits but must always focus on training and education.

Do unpaid interns in California get workers’ compensation?

Generally, unpaid interns are covered by workers’ compensation if they are injured during the internship, but coverage depends on the internship’s nature and employer policies.

Is school credit required for unpaid internships in California?

While not always required, unpaid internships are safer legally if tied to school credit or a formal educational program to show the internship is for learning.

What should an unpaid internship agreement include?

An agreement should state the internship is unpaid, describe training and learning goals, clarify no job guarantee, and confirm both parties understand the terms.

Can an unpaid intern be fired in California?

Yes, unpaid interns can be terminated like employees, but employers must follow fair treatment rules and cannot discriminate or retaliate unlawfully.