Are Unpaid Internships Legal in California?

In California, unpaid internships are legal under specific conditions. Both federal and California state laws aim to protect interns from exploitation.

Laws on Unpaid Internships

The Fair Labor Standards Act (FLSA) provides federal guidelines for unpaid internships. California aligns with these standards and often enforces them more stringently. For an unpaid internship to be lawful, it must meet several criteria:​

• Educational Benefit: The internship must provide training similar to that which would be given in an educational environment.​
• No Displacement: The intern’s work should not displace regular employees but should complement the learning experience.
• No Immediate Advantage: The employer must not derive immediate advantage from the intern’s activities; on occasion, operations may actually be impeded.​
• No Job Guarantee: The internship should not entitle the intern to a job at the conclusion of the training period.​
• Mutual Understanding: Both the employer and the intern must clearly agree, preferably in writing, that the internship will be unpaid.

If these conditions are not met, the intern is considered an employee and is entitled to minimum wage and overtime pay.

Academic Credit and Legal Compliance

Many unpaid internships ask interns to earn academic credit to meet legal standards. Colleges and universities often supervise these programs to make sure they support learning goals.

However, students usually must pay tuition to receive academic credit, which adds financial strain, especially for those from low-income backgrounds.

Public Sector and Nonprofit Internships

Unpaid internships in government agencies and nonprofit charitable organizations operate under a different set of rules. These positions often qualify as volunteer work, provided there is no expectation of compensation and the intern does not displace regular employees.

Is it Possible to Get a Paid Internship? 

California employers offer a wide array of paid internship opportunities across various industries, including technology, healthcare, finance, entertainment, government, and nonprofits.

When an employer is the primary beneficiary, meaning an intern performs productive work that benefits the company, displaces regular employees, or receives minimal training, the intern must be compensated accordingly.

Paid interns may be able to receive healthcare benefits if they work at least 30 hours per week for 90 days or longer at a company with 50 or more employees. Smaller employers are not required to offer healthcare, and seasonal interns often do not qualify. 

What Can I Do if I am Misclassified as an Intern?

If you believe you have been misclassified as an intern in California, you have several important options to protect your rights and recover unpaid wages:

Document Everything

Keep detailed records of your work duties, hours worked, communications with your employer, and any documents related to your internship. 

Speak to Your Employer

Consider raising the issue with your supervisor or the Human Resources department. Be professional and clear.

Consult an Employment Attorney

Many employment lawyers offer free consultations. An Orange County employment attorney from our firm can evaluate your situation, explain your rights, and help you file a lawsuit if necessary. 

File a Wage Claim

You can file a wage claim with the California Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office. They will investigate and can order the employer to pay back wages, penalties, and possibly interest.

Contact our firm today for a free consultation to see if you have a case.