This Intern Agreement (CA) sets forth the parameters of an unpaid internship. It addresses the criteria that employers must satisfy to ensure that unpaid interns are not classified as employees (and therefore entitled to compensation). An internship is primarily for learning purposes, whereas employment is primarily to provide work and value to the employer.
This document's language has been customized to comply with California and federal law and is intended for use by private employers.
This Intern Agreement can be customized to ensure your interns are treated fairly and allows you to include information about compensation, duties, confidentiality and termination.
An internship is an unpaid temporary position with an emphasis on training and work experience. An employee works for the business on either a full-time, part-time, casual or contract basis and is paid for their work.
Pursuant to the Fair Labor Standards Act (FLSA), an employer must pay an intern at least the minimum wage and overtime premiums unless the intern is not an "employee" within the meaning of the FLSA. The Ninth Circuit Court of Appeals adopted the “primary beneficiary” test, also known as the “non-exhaustive set of considerations” test, to determine whether an intern is an employee for purposes of the FLSA in Benjamin v. B & H Educ., 877 F.3d 1139 (9th Cir. 2017). The non-exhaustive set of considerations under the primary beneficiary test includes, but is not limited to, the following:
Regarding interns in California, the California Department of Labor Standards Enforcement’s (DLSE) Enforcement Policies and Interpretation Manual § 43.6.8 provides that students who perform work in the course of their studies, as part of the curriculum, are not employees if they receive no remuneration or credit toward school fees.
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