California Internship Laws: Essential Employment Standards

California’s internship laws significantly influence the employment landscape for interns and employers. With the state’s dynamic economy, understanding these standards is essential for compliance and protecting the rights of young professionals entering the workforce.

This article examines California’s internship regulations, focusing on wage requirements, overtime rules, and anti-discrimination protections.

Criteria for Unpaid Internships

In California, unpaid internships must provide educational benefits rather than free labor. The U.S. Department of Labor’s “primary beneficiary test” evaluates whether the intern or employer benefits more from the internship. Factors include the extent of training similar to an educational environment, the connection to the intern’s formal education, and the accommodation of academic commitments.

Internships should align with the intern’s educational pursuits and not replace regular employees. Interns must work under close supervision, distinguishing internships from regular employment. Both parties must understand that the internship is unpaid and does not guarantee future employment, helping to avoid disputes over compensation or expectations.

Minimum Wage Requirements

Under the California Labor Code, most interns classified as employees must receive at least the state minimum wage. As of January 2023, this rate is $15.50 per hour for employers with 26 or more employees and $15.00 for smaller employers, exceeding the federal minimum wage of $7.25. This rate is subject to annual adjustments based on inflation metrics, such as the Consumer Price Index.

The classification of an intern as an employee determines whether minimum wage laws apply. For example, interns performing tasks integral to the business under minimal supervision are likely considered employees and entitled to minimum wage protections. Conversely, internships focused on education and closely supervised may not require wage payments.

Employers in cities like San Francisco and Los Angeles must adhere to higher local minimum wage rates where applicable. Non-compliance can result in penalties, including back pay, fines, and litigation. Employers should document wage payments to ensure adherence to state and local laws.

Overtime Regulations

California law requires non-exempt employees, including many interns, to receive overtime pay at one and a half times their regular rate for hours worked beyond eight in a day or 40 in a week. Employers must track intern work hours accurately to avoid violations.

Interns are typically non-exempt due to the educational focus of their roles and lack of decision-making authority. Employers must classify interns correctly to ensure compliance with overtime requirements. California’s overtime laws are stricter than federal standards under the Fair Labor Standards Act, and employers must follow the stricter provisions.

Meal and Rest Breaks

California law mandates a 30-minute meal break for every five hours worked, during which interns must be relieved of all duties. Additionally, employers must provide a 10-minute paid rest break for every four hours worked. These regulations ensure fair working conditions for interns.

Employers must maintain records of meal and rest breaks to avoid penalties for missed breaks, which can result in compensation equivalent to one hour of pay for each day a break was not provided.

Anti-Discrimination Protections

California prohibits discrimination based on race, gender, sexual orientation, disability, age, and other protected characteristics under the California Fair Employment and Housing Act (FEHA). These protections ensure an inclusive environment for interns.

Employers must implement anti-discrimination policies and provide training to employees, including those supervising interns. Training should address recognizing and preventing discriminatory behavior and explain the legal consequences of violations. Clear reporting channels should be established to ensure interns feel safe and supported. Failure to comply can lead to lawsuits and reputational damage.

Workers’ Compensation

Interns classified as employees in California are entitled to workers’ compensation benefits for workplace injuries. These benefits cover medical expenses, rehabilitation costs, and lost wages resulting from job-related injuries or illnesses.

Employers must secure appropriate insurance and maintain detailed records of workplace incidents. Prompt reporting and documentation of injuries are essential. Regular safety training and assessments can help minimize workplace hazards.

Recordkeeping Obligations

Employers must maintain accurate records of intern work hours, wages, breaks, and overtime compensation to comply with California’s internship laws. Detailed documentation provides a clear audit trail for disputes or investigations.

Intern agreements outlining the internship’s terms, including work nature, learning outcomes, and compensation, should also be recorded. Proper documentation reduces the likelihood of misunderstandings or legal challenges. Employers should review recordkeeping practices regularly, leveraging technology to streamline processes and enhance data security.