Are Unpaid Internships Legal in California? Know Your Rights

Unpaid internships are common or even an expected part of gaining experience and building your resume. But are unpaid internships legal in California? The law in California is very clear: an unpaid internship is only legal if specific requirements are met. In simple words, if an internship mainly benefits the employer, the intern must be paid at least the state’s minimum wage. If you are in an unpaid internship or considering starting one, it is essential that you understand your rights under California law. That way, you can avoid being exploited.

Paid Intern Statistics in California

Unpaid internships remain prevalent in California, particularly in competitive fields such as marketing, technology, and entertainment. But just because unpaid internships are common, it does not mean that if you are an intern, you automatically don’t have the right to compensation. 

Interns have protections that may include the right to be paid in certain situations. Unfortunately, despite these protections, statistics suggest that only about 4% of women and 9% of men complete paid internships in California. This is a relatively small number, considering that thousands of students and young professionals participate in internships every year.

When Is an Unpaid Internship Legal in California?

In California, unpaid internships are only legal under very specific conditions. The state imposes strict guidelines on unpaid internships to prevent interns from being misused. An unpaid internship in California is only legal if it passes the “primary beneficiary test.” This test determines which party, the employer or the intern, benefits most from the arrangement. In short, if the intern benefits the most, the internship can be unpaid. On the other hand, if the employer benefits the most, the intern must be treated like an employee and paid at least the state’s minimum wage.

Here are the factors that must exist for an internship in California to be legally unpaid;

• The internship provides training similar to what the intern would get in an educational setting.
• The internship complements the intern’s educational program.
• The internship aligns with an academic program or school credit.
• The intern does not replace employees or perform regular employee duties.
• The intern works under close supervision.
• There is no promise of a job at the end of the internship.
• There is a mutual understanding that the internship is unpaid.
• The internship is limited in duration.

If your internship does not pass the above test, then you must be paid at least the California minimum wage. Currently, this is $16.50 per hour.

What to Do if Your Unpaid Internship is Illegal?

If you believe your unpaid internship is illegal, keep records of your tasks, hours, and any communications with the employer. Next, speak with a skilled employment attorney. An attorney can help you determine how best to proceed.

Your Rights as an Intern

Even if an employer is not required to pay you as an intern, it does not mean that they can treat you anyhow. You still have certain rights. The California Civil Rights Department (CRD) protects interns from discrimination and harassment. Employers must also provide interns with a safe work environment. However, as an unpaid intern, you are generally not covered by workers’ compensation since you are not considered an employee.

Contact a California Employment Lawyer

If you believe your rights as an intern have been violated, contact a California employment lawyer near you for legal guidance.