New Jersey 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

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.

Unpaid internships are not illegal in New Jersey under state or federal law.

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.

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.

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.

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.

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.

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 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.

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