Colorado Unpaid Interns May be Eligible for Worker's Compensation
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FAQ
In general, if a school or business is profiting or otherwise benefiting from the work of interns or work study students, or if a worker is training for a particular job, the school or business must pay the student-employees/trainees at least the minimum wage for all regular hours worked and overtime for hours worked
An intern is entitled to the National Minimum Wage if they count as a worker. Employers cannot avoid paying the National Minimum Wage if it's due by: saying or stating that it does not apply. making a written agreement saying someone is not a worker or that they're a volunteer.
Colorado offers a few exemptions to its workers' comp insurance requirements. The state does not require employers to provide workers' comp insurance to: Casual maintenance or repair workers and casual farm or ranch workers who the employer pays less than $2,000 per calendar year.
Per USDOL, individuals may participate in unpaid internships at both for-profit and non-profit organizations, if all seven of the following criteria are met: 1. The extent to which the intern and the employer clearly understand that there is no expectation of compensation.
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.
For example, independent contractors and volunteers sometimes aren't eligible for workers' comp. Other states don't cover volunteer firefighters and people who volunteer for search and rescue parties, but Colorado law covers these individuals as well.
The Colorado Workers' Compensation Act requires unpaid student interns to be covered by workers' compensation insurance.
In general, if a school or business is profiting or otherwise benefiting from the work of interns or work study students, or if a worker is training for a particular job, the school or business must pay the student-employees/trainees at least the minimum wage for all regular hours worked and overtime for hours worked
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.
