North Carolina Unpaid Interns May be Eligible for Worker's Compensation
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How to fill out Unpaid Interns May Be Eligible For Worker's Compensation?
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FAQ
In Texas, private employers can choose to carry workers' compensation insurance coverage, but it is not required in most cases. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job.
In Texas, if a company has worker's compensation, interns are generally eligible for the same coverage as full-time employees.
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.
A public employer may not pay interns a stipend that amounts to less than the minimum wage. If a public employer wishes to pay an intern a stipend, then the intern becomes a temporary employee, subject to minimum wage and all of the other applicable requirements of the FLSA.
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.
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.
An intern might be eligible for workers' compensation coverage if they are unpaid but their duties and schedule are directly controlled by you as the employer.
Under workers' compensation law, an injury or illness is covered, without regard to fault, if it was sustained in the course and scope of employment, i.e., while furthering or carrying on the employer's business; this includes injuries sustained during work-related travel.
Those businesses that employ three or more employees are required to carry workers compensation insurance except agricultural employment with fewer than 10 employees, certain sawmill and logging operations and all domestic employees are exempt.
