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Unpaid Interns Interns are usually college students or recent graduates who work for a company on a temporary basis, often for academic credit. A company cannot be the primary beneficiary; an intern should not be replacing the work of an employee because the internship is for education and training purposes.
If you don't get the opportunity to ask those questions during or after the interview, consider doing so via email. Let them know how much you appreciate their time and ask if you can follow up with a few questions. At this point, simply ask them whether the internship is paid or unpaid.
There are no legal limits on the number of hours an unpaid intern over the age of 18 is allowed to work. For undergraduate students still in school, unpaid internship hours per week are usually limited to 10 to 20.
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.
If an intern is placed with the employer for a trial period with the expectation that he or she will then be hired on a permanent basis, that individual generally would be considered an employee 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.
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.
In Texas, if a company has worker's compensation, interns are generally eligible for the same coverage as full-time employees.
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.
If an intern is placed with the employer for a trial period with the expectation that he or she will then be hired on a permanent basis, that individual generally would be considered an employee under the FLSA. Internships can be valuable for both the business and the intern.