Are Unpaid Internships Legal in California? Know Your Rights in 2025

Unpaid internships are common or even an expected stepping stone in many professions. All workers, including many interns, have the right to earn minimum wage or higher unless the program meets strict criteria set by the Division of Labor Standards Enforcement (DLSE). If you are considering an unpaid position, you may be wondering, “Are unpaid internships legal in California?”

Some employers may take advantage of this loophole to deny an intern fair wages. An Orange County employment lawyer can evaluate whether your rights were ignored. An attorney can help you determine whether the unpaid internship complied with state rules or exploited your labor. You may be able to recover unpaid wages and other damages.

Understanding Intern Statistics and Enforcement in California

Internships can be an important introduction into many industries for prospective employees, but even interns have protections that may include the right to compensation in certain situations. In California, two government agencies play key roles in regulating internships.

The Division of Labor Standards Enforcement (DLSE) determines whether an intern qualifies as an employee under wage and hour laws. The California Civil Rights Department (formerly DFEH) ensures that interns are protected from discrimination and harassment.

Despite their importance, paid internships are relatively uncommon. In California, only about 4% of women and 10% of men complete paid internships. Nationally, just 21.5% of college students complete an internship each year, and 39.2% of those internships are unpaid. Next, we’ll explore the factors that the government considers when examining the legality of unpaid internships.

Factors That the State Considers When Evaluating the Legality of Unpaid Internships

California imposes strict guidelines on unpaid internships to prevent employers from misusing interns. The most common lawful use of unpaid internships is for academic purposes. Many college programs, both in-person and online, allow or require students to complete an internship. The goal of these internships is to provide students with the real-world experience they need to succeed in their respective careers.

Students who undergo these college-approved programs take on light tasks and generally observe workers who are actively engaged in their tasks. Importantly, these programs primarily benefit the intern, not the employer. These programs cannot displace regular workers or serve as a substitute for paid staff.

The state also considers:

• Whether the intern was promised a job afterward or led to expect one
• Whether the intern understands that the position is unpaid
• Whether the internship is tied to a formal educational program

Interns should not receive employee benefits, and the work should not provide the employer with immediate advantage or benefits. The general rule is that any unpaid internship must provide a genuine educational experience, not serve as a substitute for paid work. It should focus on helping the intern develop foundational skills relevant to their future career.

How to Spot Mistreatment of Interns and When to Hire an Employment Lawyer

California employment laws are clear. If an internship benefits the employer more than the intern, the internship may not qualify as an unpaid position. Any intern who has been subjected to harassment or other violations of their rights has the right to hire an employment lawyer who handles employment cases.

An employment attorney can explain California’s employment laws and which laws may have been broken. Legal representation ensures that a worker’s rights are protected and their workplace violations are taken seriously. Under state law, remedies could include backpay for unpaid wages, the restoration of benefits, and other forms of relief.

FAQs

Q: Is It Legal to Have an Unpaid Intern in California?

A: Yes, you can legally have an unpaid intern, but only if you meet strict legal requirements. The intern must benefit from the experience. This often means that there is a clear path for the intern to be hired there or elsewhere after the internship ends. The internship should be tied to academic credit, have a clear unpaid agreement, and be limited in duration. If these conditions are not met, the intern must be classified and paid as an employee.

Q: Which States Allow Unpaid Internships?

A: Most states allow unpaid internships if federal guidelines are followed. However, states like California, New York, and Oregon apply stricter rules to protect workers and interns. Each state evaluates whether the internship is educational in nature and benefits the intern more than the employer. Employers should review their state-specific labor laws before offering unpaid roles. Misclassification could lead to penalties and reclassifications.

Q: What Rights Do Unpaid Interns Have?

A: Unpaid interns in California have many of the same rights as other workers. These include protections against harassment, discrimination, and retaliation under state law. Interns have the right to work in a safe and respectful environment, even without employee status. There are limitations, though. Interns are not entitled to wages, overtime, or meal breaks unless legally classified as employees.

Q: Are Unpaid Interns Covered by Workers’ Compensation in California?

A: Unpaid interns are usually not covered by workers’ comp in California. This is because unpaid interns are not considered employees and are generally excluded from workers’ compensation coverage in California. Some public agencies may offer coverage voluntarily, but private employers typically do not offer this type of coverage. If an intern is injured on the job, they may need to rely on private insurance or other remedies.

Ready to Hire an Employment Lawyer? Take Action Now

Unpaid internships are legal in California, but only under strict conditions. If you’re being asked to work without pay, and you aren’t receiving clear educational benefits, you may be entitled to wages and legal protection. Employers may misuse the intern designation to avoid paying workers or independent contractors what they are owed. Don’t assume the title “intern” excuses labor violations.

At the Law Offices of Corbett H. Williams, we know how California labor law works because we enforce it. Our founding attorney graduated cum laude from Loyola Law School, where he ranked in the top 3% of his class. He has a solid track record of fighting for the rights of workers across Orange County. If you believe your internship violates state law, contact our office today for a consultation and get answers backed by experience.