What are the laws governing unpaid internships?

In California, the law governing unpaid internships is the California Labor Code Sections 651-670.8 and the Division of Labor Standard Enforcement (DLSE) Enforcement Manual. These laws state that interns in California must receive the same minimum wage and overtime pay as any other employee of the company. Additionally, the law requires that the intern must be receiving training from the employer that is similar to that which it would have provided to an employee. In order to be considered an unpaid internship in California, the internship must meet all the criteria of the Wage Order for the particular industry. These criteria include that the internship must be for the benefit of the intern and not for the benefit of the employer. Additionally, the intern must not replace an employee, but instead be an educational experience. The employer must not derive any immediate advantage from the intern’s activities and must maintain a training program. Furthermore, interns must receive some remuneration, such as a stipend or a credit toward a degree, in order to be considered unpaid. Otherwise, the individual must be paid the minimum wage and overtime. In some cases, the law states that interns can be paid less than minimum wage if the intern understands and agrees to the lower wage rate. Finally, the law requires that the internship must be approved by a school, college or vocational institution, or be a state or municipality approved program. The employer must also keep records of interns and comply with applicable child labor laws.

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What are the laws governing unpaid internships?

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