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Accordingly, interns whether paid or unpaid are eligible for workers' compensation benefits in most cases.
Under the Fair Labor Standards Act of 1938, any employee of a for-profit company must be paid for their work. However, interns are not considered employees under the FLSA.
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.
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.
Unpaid internships are not illegal in New Jersey under state or federal law.
Every business that has employees in New Jersey is required to carry workers' compensation insurance. State law provides some exceptions for employers covered by federal programs and members of limited liability corporations (LLCs), partners in partnerships, and sole proprietors who don't employ other people.
Workers' compensation, which pays you certain benefits if you are hurt on the job, is only for employees. The law in Illinois does not extend the right to benefits to volunteers.
Sole proprietors, business partners, corporate officers, and members of limited liability companies may exempt themselves. Overall, it is estimated that 91% of Illinois employees are covered under the Act.
1. Are unpaid internships legal? Yes, unpaid internships are legal if they primarily benefit the intern. The Fair Labor Standards Act (FLSA) has a test, the primary beneficiary test, for determining whether an internship is legally allowed to be unpaid.
Be aware there are some workers' comp exemptions to New Jersey's law, such as: Unpaid interns. Unpaid volunteers. Independent contractors.