Understanding unpaid intern rights begins with recognizing that these workers exist in a unique legal gray area where their employee status depends entirely on who benefits most from the arrangement. Under federal law, unpaid interns may or may not qualify as “employees” based on the Department of Labor’s primary beneficiary test, which evaluates seven specific factors to determine whether the employer or intern receives the greater benefit from the relationship.
The Fair Labor Standards Act (FLSA) governs when unpaid internships are legal, requiring that legitimate educational experiences primarily benefit the intern rather than the employer. When the primary beneficiary test reveals that employers gain more value than interns, these workers must be reclassified as employees entitled to minimum wage and overtime pay. This distinction affects everything from wage protections to discrimination claims, making it crucial for interns to understand their legal status.
While unpaid interns face significant gaps in federal workplace protections compared to regular employees, they retain important rights under certain circumstances. These include anti-discrimination protections under some state laws, workplace safety protections, and the right to file complaints when internship programs violate federal guidelines. Understanding these rights—and their limitations—empowers interns to recognize exploitation and seek appropriate legal remedies.
Are Unpaid Internships Legal Under Federal Law?
Yes, unpaid internships are legal under federal law, but only when they meet strict criteria established by the Fair Labor Standards Act and evaluated through the Department of Labor’s primary beneficiary test. The legality hinges on whether the arrangement primarily benefits the intern’s education rather than providing free labor to the employer.
The Department of Labor adopted the current primary beneficiary test in January 2018, replacing earlier rigid frameworks with a more flexible analysis that examines the economic realities of each internship. This test recognizes that some unpaid educational experiences provide legitimate value to students while ensuring that for-profit companies cannot exploit unpaid workers under the guise of training.
The Fair Labor Standards Act Requirements
The FLSA establishes the baseline requirement that all workers must receive minimum wage unless they qualify for specific exemptions. For unpaid internships, this means demonstrating that the arrangement constitutes genuine educational training rather than regular employment. The law requires that interns receive meaningful educational benefits that would be similar to instruction in an academic environment.
Additionally, the FLSA mandates that unpaid internships cannot displace regular employees or provide immediate advantages to employers. The training must accommodate the intern’s academic commitments, typically lasting for a limited duration tied to the learning objectives rather than business needs.
When Unpaid Internships Become Illegal
Unpaid internships cross into illegal territory when they fail the primary beneficiary test by primarily serving the employer’s interests. Common violations include having interns perform regular employee duties without supervision, using interns to fill staffing gaps, or providing minimal educational value while gaining substantial free labor.
Red flags that signal illegal unpaid internships include interns working full-time hours performing routine tasks, replacing paid positions, or being promised future employment in exchange for unpaid work. At Premier Legal Group, we frequently see cases where companies have structured supposed “training programs” that actually function as trial employment periods without compensation.
Department of Labor Primary Beneficiary Test
The primary beneficiary test represents the current standard for evaluating unpaid internship legality, focusing on which party—employer or intern—receives the greatest benefit from the arrangement. Unlike previous tests that required meeting rigid criteria, this analysis considers seven factors holistically to determine the economic reality of the relationship.
This flexible approach acknowledges that not every factor must favor the intern, but the overall balance should demonstrate that the educational experience provides the primary value. Courts and investigators examine the totality of circumstances rather than checking boxes, making each case highly fact-specific.
The Seven Factors Explained
The first factor examines whether the internship provides training similar to that found in educational environments, with structured learning objectives and regular feedback. Effective programs include formal curricula, defined learning goals, and educational components that extend beyond routine work tasks.
The second factor evaluates whether the internship experience benefits the intern’s education or training, requiring demonstrable skill development or career preparation. The third factor considers integration with the intern’s formal education through academic credit, coursework alignment, or institutional oversight that ensures educational value.
Duration limitations form the fourth factor, with legitimate internships having defined timeframes tied to learning objectives rather than business cycles. The fifth factor examines supervision levels, requiring meaningful mentorship that facilitates learning rather than simple task delegation.
The sixth factor analyzes whether the internship displaces regular employees or supplements existing work without providing educational benefits. Finally, the seventh factor requires clear understanding from all parties that the position is unpaid, with no expectation of compensation or guaranteed employment.
How Courts Apply the Primary Beneficiary Test
Courts examine the economic realities of internship arrangements, often finding violations when interns perform work that would otherwise require paid employees. Recent decisions emphasize that legitimate educational experiences should impose some burden on employers through supervision and training rather than providing immediate productivity gains.
Successful challenges typically demonstrate that interns spent substantial time on routine tasks with minimal educational oversight, effectively functioning as unpaid temporary workers. Courts also scrutinize whether companies use internship programs to evaluate potential hires, which can indicate that employers receive the primary benefit through free trial periods.
What Rights Do Unpaid Interns Have?
Even when properly classified as unpaid interns rather than employees, these workers retain specific legal protections, though significantly fewer than regular employees enjoy. The scope of protection varies dramatically between federal and state law, with some jurisdictions providing comprehensive anti-discrimination coverage while others offer minimal protections.
Understanding which rights apply helps interns recognize when they face illegal treatment and identify appropriate remedies. While unpaid interns cannot claim most employment benefits, they maintain fundamental protections against certain forms of workplace misconduct and unsafe conditions.
Protections That Apply to Unpaid Interns
Workplace safety protections under OSHA apply to unpaid interns, requiring employers to maintain safe working conditions and provide necessary safety training. This includes protection from hazardous exposures, adequate safety equipment, and compliance with industry-specific safety standards.
Anti-discrimination and harassment protections vary by jurisdiction, with some states extending comprehensive civil rights coverage to unpaid interns. In jurisdictions with such protections, interns can file complaints for discrimination based on protected characteristics like race, gender, sexual orientation, or disability status.
The right to file complaints with the Department of Labor remains available when internship programs violate federal guidelines, potentially resulting in back wage awards if interns are reclassified as employees. Additionally, interns retain rights under state wage and hour laws, which may provide broader protections than federal standards.
Protections That Don’t Apply to Unpaid Interns
Properly classified unpaid interns generally cannot claim minimum wage or overtime pay under the FLSA, as they fall outside the definition of “employee” for wage and hour purposes. This exemption represents the most significant gap in protection, as interns provide valuable services without compensation.
Workers’ compensation coverage typically excludes unpaid interns, leaving them without protection for workplace injuries unless state law specifically includes interns or they qualify under volunteer worker provisions. Unemployment benefits remain unavailable to unpaid interns, as benefit eligibility requires prior wage earnings.
Employment benefits like health insurance, retirement contributions, or paid leave don’t extend to unpaid interns, who lack employee status for benefit purposes. Family and medical leave protections under federal law also don’t apply, though some state laws may provide broader coverage.
Discrimination and Harassment Protections
Federal discrimination protections under Title VII, the Americans with Disabilities Act, and the Age Discrimination in Employment Act generally don’t cover unpaid interns because these laws protect “employees” rather than all workers. This creates significant protection gaps, particularly for discrimination and harassment claims that would otherwise provide strong remedies.
However, state laws increasingly fill these gaps by extending anti-discrimination protections to unpaid interns, recognizing that workplace harassment and discrimination cause serious harm regardless of employment status. The availability and scope of these protections depend entirely on state law variations.
Federal Law Limitations
Title VII’s definition of “employee” excludes most unpaid interns from federal discrimination protections, creating vulnerability to workplace harassment and discriminatory treatment. The Equal Employment Opportunity Commission has attempted to address this gap through guidance documents, but federal statutory protections remain limited.
Courts have occasionally found that unpaid interns qualify for federal protections when their work arrangements closely resemble employment relationships, but these decisions remain inconsistent and fact-specific. The general rule maintains that federal anti-discrimination laws don’t protect unpaid interns.
State Law Protections
New York leads in providing comprehensive protections through its Human Rights Law, which explicitly covers unpaid interns and prohibits discrimination, harassment, and retaliation based on protected characteristics. California has similarly extended many workplace protections to unpaid interns through state civil rights legislation.
Illinois, Maryland, and several other states have enacted specific statutes protecting unpaid interns from discrimination and harassment, recognizing that these workers deserve fundamental dignity protections regardless of compensation status. These state laws often provide broader coverage than federal protections available to regular employees.
State Laws on Unpaid Internships
State regulations create a complex patchwork of requirements that often exceed federal standards, with some states implementing stricter criteria for unpaid internships and enhanced worker protections. Understanding applicable state law becomes crucial for both interns and employers, as violations can result in significant penalties beyond federal requirements.
At Premier Legal Group, we regularly advise clients on navigating these varying state requirements, particularly when internship programs operate across multiple jurisdictions with different legal standards. State law variations affect everything from classification criteria to available remedies for violations.
California Unpaid Internship Laws
California applies an 11-factor test that often proves more restrictive than federal standards, requiring clear educational objectives, academic supervision, and demonstrated learning outcomes. The state’s Division of Labor Standards Enforcement actively investigates unpaid internship complaints and frequently finds violations requiring back wage payments.
California also extends comprehensive anti-discrimination protections to unpaid interns through the Fair Employment and Housing Act, providing broad coverage for harassment and discrimination claims. These protections include attorney fee awards for successful claims, creating strong incentives for employers to maintain compliant programs.
New York Internship Protections
New York’s Department of Labor has established detailed guidance requiring that unpaid internships provide educational rather than economic benefits to employers. The state actively enforces these requirements and has secured significant settlements from companies that misclassified interns as unpaid when they should have received wages.
The New York Human Rights Law provides comprehensive anti-discrimination coverage for unpaid interns, including protections against harassment, retaliation, and discriminatory treatment. This coverage extends to all protected characteristics under state civil rights law.
Other State Variations
Massachusetts requires that unpaid interns receive academic credit through an educational institution, effectively eliminating most unpaid internships that don’t maintain formal academic partnerships. Oregon has implemented similar academic credit requirements while providing enhanced workplace protections.
Illinois recently expanded its Human Rights Act to cover unpaid interns, while Connecticut requires written agreements outlining educational objectives for all unpaid internships. These state-specific requirements create compliance challenges for multi-state employers but provide enhanced protections for interns.
How to Report Unpaid Internship Violations
When unpaid internships violate federal or state requirements, interns can file complaints with multiple agencies to seek remedies including back wages, penalties against employers, and corrective action to prevent future violations. The reporting process varies between federal and state agencies, but generally requires documenting the internship arrangement and specific violations.
Successful complaints often result in significant financial recoveries for affected interns, with investigations frequently revealing systematic violations affecting multiple workers. Understanding the complaint process empowers interns to protect their rights and hold employers accountable for illegal practices.
Filing a Department of Labor Complaint
Contact the Department of Labor’s Wage and Hour Division at 1-866-487-9243 to initiate a complaint about unpaid internship violations. The WHD investigates complaints confidentially and examines whether internships meet federal criteria for unpaid status.
Prepare documentation including internship agreements, job descriptions, time records, and examples of work performed. The investigation process typically includes interviews with interns and employers, review of written materials, and analysis of the internship structure against federal requirements.
State Labor Department Complaints
Most states maintain separate labor departments with authority to investigate unpaid internship violations under state law. These agencies often provide broader protections than federal standards and may secure additional remedies for affected workers.
State investigations can proceed simultaneously with federal complaints, potentially providing multiple avenues for relief. Some states offer expedited processes for wage claims, while others focus on systematic violations affecting multiple interns.
What Happens After You File a Complaint
Initial investigations typically begin within days of filing, with investigators examining the internship structure and interviewing relevant parties. When violations are confirmed, agencies work to secure back wages for affected interns and may impose additional penalties on employers.
The process can take several months for complex cases, particularly when multiple interns are affected or when employers dispute the findings. Successful investigations often result in policy changes at companies to prevent future violations, creating broader benefits beyond individual cases.
Get Legal Help for Unpaid Internship Rights Violations
Navigating unpaid internship rights requires understanding complex federal and state laws that vary significantly across jurisdictions. When internships violate legal requirements, affected workers deserve full compensation and protection from retaliation, but securing these remedies often requires experienced legal advocacy.
If you believe your unpaid internship violated federal or state labor laws, contact Premier Legal Group for a confidential consultation about your rights and available remedies. Our employment law attorneys have extensive experience with unpaid internship cases and can help you understand whether you’re entitled to back wages, damages, or other relief under applicable law. Call us today to discuss your situation and protect your rights as a worker.
