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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 Texas, if a company has worker's compensation, interns are generally eligible for the same coverage as full-time employees.
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.
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 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.
Your unpaid internship basically allows a company the opportunity to interview you for a long period of time and gives you the opportunity to impress them. In addition, it gives you a risk free way to see the company from the inside and understand whether or not you fit the culture.
Snopes says: First, the candidates offering unpaid internships are not breaking any laws. In most cases, it is perfectly legal to hire interns for non-paying positions as long as those interns receive some tangible benefit (such as school credit or valuable work experience) in return. Big Snope Nope.
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.
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.
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.