Cook Illinois Unpaid Interns May be Eligible for Worker's Compensation
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FAQ
If the intern is deemed an employee then under the Illinois Workers Compensation Act they would be covered on your Workers Compensation policy.
Unpaid internships are legal if the intern is the primary beneficiary of the arrangement as 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 at least minimum wage.
California Law Protects Unpaid Interns and Volunteers from Harassment and Discrimination. California has become the third state in the country, after New York and Oregon, to ban sexual harassment and discrimination in the workplace directed toward unpaid interns.
The federal courts and the U.S. Equal Employment Opportunities Commission have historically held that civil rights protections under Title VII of the Civil Rights Act of 1964 do not extend to unpaid interns.
Unless all of the following criteria are met, the intern is legally an employee, who must be paid the minimum wage, earn overtime, and receive all of the other protections guaranteed by state and federal employment laws: Interns cannot displace regular employees.
When do interns have to be paid? Interns must be paid unless the internship satisfies the federal Department of Labor's (DOL) six-factor test, which has been adopted in California.
Illinois law requires employers to provide workers' compensation insurance for almost everyone who is hired, injured, or whose employment is localized in Illinois. Sole proprietors, business partners, corporate officers, and members of limited liability companies may exempt themselves.
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.
99% of the time the answer is YES - interns are covered2026 even if unpaid. The question falls back to the definition of an employee and for this you can refer to the IRS website for the definition: The IRS sites Common Law Rules.
California rules for an unpaid internship The 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.
