Maine Unpaid Interns May be Eligible for Worker's Compensation

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US-0543BG
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If your organization helps students and recent graduates gain work experience by offering internships, be aware that even interns who aren't paid could be eligible for workers' compensation.

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FAQ

To date, Maine courts have not ruled on the issue of when an intern must be paid. If an employer decides to offer an unpaid internship, clear communication and documentation is essential. This should begin with an employer's recruitment materials and/or written description of the internship.

Businesses in New York State must have workers' compensation coverage for all employees. The rule includes part-time employees and family members employed by the company. Employers must have a workers' compensation insurance policy.

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.

Shorter breaks are common but not required by law. Shorter breaks or pauses away from performing duties must be paid and cannot be deducted from the employee's time worked.

Student interns are individuals who provide services to gain work experience. Workers' Compensation coverage is required for student interns (paid or unpaid) who provide services to a for-profit business, a nonprofit organization, or a government agency.

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.

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.

There are no rules. The company will have their own reasons and standards by which they want to check your background. All you can do is let them do their own checking through their own professional resources, and if they aren't satisfied then, they will come to you and see if you have evidence that will satisfy them.

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.

Any employee or employees or class of employees not enumerated in section three, subdivision one, group one to seventeen inclusive, of this chapter, employed by a municipal corporation or political subdivision of the state, may by the terms of the contract or agreement be expressly excluded therefrom.

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Maine Unpaid Interns May be Eligible for Worker's Compensation