Unpaid Interns May be Eligible for Worker's Compensation

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Multi-State
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US-0543BG
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Description

If your organization helps students and recent graduates gain work experience by offering internships, be aware that even interns who aren't paid could be eligible for workers' compensation.

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FAQ

Unpaid internships are legal if the intern is the "primary beneficiary" of the arrangement. This is determined by the seven-point Primary Beneficiary Test. If an employer is the primary beneficiary, the intern is considered an employee under the Fair Labor Standards Act and entitled to minimum wage.

Unless all of the following criteria are met, the intern is legally an employee, who must be paid the minimum wage, earn overtime, and receive all of the other protections guaranteed by state and federal employment laws: Interns cannot displace regular employees.

First Aid Treatment is Usually Not Enough. Injuries Outside the Office Are Covered. Injuries Outside the Scope of Employment. Cumulative Events and Injuries. Mental Health Conditions.

Internships are programs where students or other trainees work for a period of time at a business, generally to gain experience or skills. Unlike the other types of employment, internships aren't always paid. In some cases, an intern works without pay at a business to receive college credit or even just experience.

Interns will generally receive guidance and direction from the employer, including daily job duties, training and coaching. Services an intern performs will most likely be controlled by the employer, and once an employee-employer relationship exists, an intern cannot be classified as an independent contractor.

In Texas, if a company has worker's compensation, interns are generally eligible for the same coverage as full-time employees.

In California, the Division of Labor Standards Enforcement (DLSE) has additional unpaid internship labor laws specific to the state.The intern cannot receive employee benefits, including insurance or workers comp.

According to Chron.com, internships, even short ones and unpaid ones, are a form of employment. They provide essential experience and should be included on your resume.

A worker is disqualified where the injury: (1) is caused by the worker's own intoxication (alcohol or other controlled substance as defined by the Health and Safety Code; (2) is intentionally self-inflicted; (3) occurs out of an altercation (mutual combat) where the claimant was the initial physical aggressor; (4)

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Unpaid Interns May be Eligible for Worker's Compensation