Illinois 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.
Accordingly, interns whether paid or unpaid are eligible for workers' compensation benefits in most cases.
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.
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.
The Department of Labor (DOL) states that unless an employer is a non-profit organization, using an intern for unpaid labor is against the law according to the Fair Labor Standards Act (FLSA).
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.
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.
