California Unpaid Interns May be Eligible for Worker's Compensation
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FAQ
Internships do not displace regular employees. Instead, interns work in partnership with and under the supervision of regular employees. Employers receive no immediate benefit from interns' activities.
A. Student Work Even though such services are not determined to be "employment" for purposes of UI coverage, an employer-employee relationship is established.
California rules for an unpaid internshipThe intern can't get employee benefits, such as insurance or workers compensation. The employer must instruct the intern to operate in a specific industry, not only a particular firm. After recruiting, the company has to be upfront about the unpaid nature of this position.
"An individual is disqualified for unemployment compensation benefits if the director finds that he or she left his or her most recent work voluntarily without good cause or that he or she has been discharged for misconduct connected with his or her most recent work."
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.
In California, the vast majority of workers are covered by workers' compensation. Any employer who has even one employee must have workers' compensation insurance. There are no exceptions for employees who work part time vs. full time, nor are there any exceptions for seasonal workers.
California Law Protects Unpaid Interns and Volunteers from Harassment and Discrimination. California has become the third state in the country, after New York and Oregon, to ban sexual harassment and discrimination in the workplace directed toward unpaid interns.
Am I eligible for unemployment benefits? Most likely not, but it depends. As a paid intern, you are required to report your salary in your taxes. Depending on the income threshold for unemployment benefits in your state, you may be eligible.
