Alabama Unpaid Interns May be Eligible for Worker's 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.
Under workers' compensation law, an injury or illness is covered, without regard to fault, if it was sustained in the course and scope of employment, i.e., while furthering or carrying on the employer's business; this includes injuries sustained during work-related travel.
Texas does not have separate regulations at the state level regarding unpaid internships. Instead, the Texas Workforce Commission advises employers to adhere to the six-prong test established by the DOL.
In Texas, if a company has worker's compensation, interns are generally eligible for the same coverage as full-time employees.
Workers' compensation laws apply a broad definition of the word employee and may cover interns regardless of whether they are paid or not. Accordingly, interns whether paid or unpaid are eligible for workers' compensation benefits in most cases.
Employers who hire unpaid interns face potential legal troubles, including costly class action lawsuits. Recently, unpaid interns brought a class-action lawsuit against Mary-Kate and Ashley Olsen's entertainment company, Dualstar Entertainment Group, LLC.
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.
In California, Volunteers Cannot Be Harassed or Fired for Illegal Reasons. The California Fair Employment and Housing Act protects even unpaid interns and volunteers from illegal harassment and discharge.
Unpaid internships can be a great way to start building your professional network, develop skills and receive valuable feedback from professionals. They can also be a good indicator of whether you'll like your future profession.
But internships are an opportunity for people who are new to their field to struggle and sometimes fail in a relatively safe environment. It's much better, professionally speaking, to be fired from an internship at 20 than to be fired from an entry-level job at 24.
