New Hampshire Unpaid Interns May be Eligible for Worker's Compensation

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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

So unpaid internships are highly dicey as to their legality or not. They are also not realistic for many people. An unpaid internship can take up the time of a full time job, making it difficult for poorer students who may need additional sources of income. It's hard to balance a full time internship, job and school.

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.

In California, unpaid internships are legal as long as the employer follows specific rules and requirements. For starters, the intern must be the primary beneficiary and not the employer.

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.

Unpaid internships must be also approved by the NHDOL under Chapter LAB 805.02. More information is available on the NHDOL website, , linking to the Frequently Asked Questions and then the topic of School-to-Work.

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.

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.

Interns usually must be paid, but there are limited circumstances when they may be unpaid. The Department of Labor Standards (DLS) determines who can work as an unpaid intern.

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.

New Hampshire law requires employers to provide workers' compensation insurance. The primary responsibility for obtaining workers' compensation insurance rests upon employers who must apply for and obtain coverage prior to the hiring of any employee.

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New Hampshire Unpaid Interns May be Eligible for Worker's Compensation