Wisconsin Unpaid Interns May be Eligible for Worker's Compensation
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FAQ
Unpaid Interns Interns are usually college students or recent graduates who work for a company on a temporary basis, often for academic credit. A company cannot be the primary beneficiary; an intern should not be replacing the work of an employee because the internship is for education and training purposes.
Workers' compensation laws apply a broad definition of the word employee and may cover interns regardless of whether they are paid or not. Accordingly, interns whether paid or unpaid are eligible for workers' compensation benefits in most cases.
Wisconsin employers are required to carry workers' compensation insurance unless they are self-insured or qualify for an exemption. This policy covers medical costs for workplace injuries and provides disability benefits.
1. Are unpaid internships legal? Yes, unpaid internships are legal if they primarily benefit the intern. The Fair Labor Standards Act (FLSA) has a test, the primary beneficiary test, for determining whether an internship is legally allowed to be unpaid.
Sole proprietors, business partners, corporate officers, and members of limited liability companies may exempt themselves. Overall, it is estimated that 91% of Illinois employees are covered under the Act.
Accordingly, interns whether paid or unpaid are eligible for workers' compensation benefits in most cases.
If an intern is placed with the employer for a trial period with the expectation that he or she will then be hired on a permanent basis, that individual generally would be considered an employee under the FLSA.
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.
If an intern is placed with the employer for a trial period with the expectation that he or she will then be hired on a permanent basis, that individual generally would be considered an employee under the FLSA. Internships can be valuable for both the business and the intern.
Workers' compensation, which pays you certain benefits if you are hurt on the job, is only for employees. The law in Illinois does not extend the right to benefits to volunteers.
