Now that summer is here, many recent graduates and students will be looking for summer jobs. Some employers may ramp up staffing for the summer season and other employers may seek to offer “internships” for students to acquire skills and experience. In both situations, employers must be aware of their legal obligations. The below outlines some issues to consider.
I. Intern – paid or unpaid?
If a worker is improperly classified as an “unpaid intern” the employer can be subject to liability for a variety of wage and hour violations not the least of which is unpaid wages, overtime, and failure to provide a wage statement.
To determine whether a worker can be an unpaid intern, both federal and California law have adopted the “primary beneficiary” test. The key factor is who is the “primary beneficiary” of the work performed. This is intended to be a flexible test where no single factor is determinative. If each of, or a majority of, the below factors are met then the worker likely can be classified as an “unpaid intern.”
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- Is it understood by the worker that the position is not a paid position. Any promise of compensation, express or implied, suggests that the intern is an employee.
- Does the internship provide training similar to that provided in an educational environment, including the clinical and other hands-on training provided by educational institutions.
- Is the internship tied to the student’s formal education program by integrated coursework or the receipt of academic credit.
- Does the internship accommodate the student’s academic commitments by corresponding to the academic calendar.
- Is the internship’s duration limited to the period in which the internship provides the intern with beneficial learning.
- Does the intern’s work complement, rather than displace, the work of paid employees while providing significant educational benefits to the intern.
- Do the intern and the employer understand the internship is conducted without entitlement to a paid job at the internship’s conclusion.
If the above criteria are not met then the worker is an employee or a “paid intern” in which situation employers should ensure they follow the below requirements.
II. Wage and Hour Laws for Paid Interns & Seasonal Summer Staff:
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- Minimum Wage: In 2025, the statewide minimum wage is $16 per hour. In Los Angeles and in other local jurisdictions the minimum wage increases on July 1, 2025. Be sure to pay the proper rate of compensation.
- Overtime pay: As are all hourly non-exempt employees, summer staff and paid interns are entitled to overtime compensation – 1.5x their regular rate of pay when working over 8 hours per day or 40 hours per week.
- Meal and Rest Breaks: Summer staff and paid interns are entitled to required meal and rest breaks.
- Time Records: Summer staff and paid interns should be required to maintain a daily time record so that they are compensated properly and the employer can manage their meal and rest breaks.
III. Worker’s Compensation:
Summer seasonal staff and paid interns are considered “employees” and as such are covered by California’s workers’ compensation laws. They should be provided with information on workers compensation insurance. If the worker is properly classified as an “unpaid intern” they typically are not eligible for workers’ compensation benefits.
IV. Non-Discrimination and Harassment:
Unpaid interns and summer seasonal employees are entitled to the same protection under California law (FEHA) against discrimination, harassment, retaliation, and bullying based on the protected characteristics such as race, gender, sexual orientation, religion, national origin, etc.
V. Employing Minors (under 18):
Work Permits and Child Labor Laws: Hiring a minor, at any time during the year, requires that certain forms be completed and filed with the school district. In addition, there are restrictions on the hours a minor may work. Detailed information can be found on the Labor Commissioner’s website.
Work Permits: According to the DLSE, prior to permitting a minor to work, employers must possess a valid Permit to Employ and Work. The Permit to Employ and Work are issued on the same form. A Permit to Employ and Work in industries other than entertainment is usually issued by an authorized person at the minor’s school. During summer months or when school is not in session the work permit is obtained from the superintendent of the school district in which the minor resides.
After an employer agrees to hire a minor, the minor obtains from his or her school a Department of Education form entitled “Statement of Intent to Employ Minor and Request for Work Permit”.
The form must be completed by the minor and the employer and signed by the minor’s parent or guardian and the employer. After returning the completed and signed form to the school, school officials may issue the permit to employ and work.
Permits issued during the school year expire five days after the opening of the next succeeding school year and must be renewed. Confirm that the minor’s proposed work schedule complies with the hours on the permit.
Working Hours for a Minor: The total number of hours a minor can work, and the permitted spread of hours varies depending on the age of the minor and the time of year in which work will be performed. With specific exceptions, it is a misdemeanor to require any minor to work more than eight hours a day.
The Department of Industrial Relation’s Child Labor Laws Summary Chart explains child labor law requirements and restrictions categorized by age and whether or not school is in session. For example, for ages 16 and 17, while school is not in session, the student can work 8 hours per day and 48 hours per week. The hours the minor may work are between 5:00 a.m. to 10:00 p.m. and until 12:30 a.m. on any evening preceding a non-school day. When school is in session, the same students are restricted to 4 hours per day on any school day and 8 hours on any non-school day or on any day preceding a non-school day and a total of 48 hours per week.
Wherever state and federal standards overlap or appear to contradict, the more protective standard always applies.
Conclusion:
When hiring summer staff, employers must carefully consider the legal distinction between paid and unpaid interns, ensure compliance with wage and hour laws, provide workers’ compensation coverage for paid interns, adhere to anti-discrimination and harassment laws, and properly manage the intern program to ensure it provides a beneficial learning experience for the intern while also aligning with legal requirements.
This Newsletter is intended as a brief summary of employment law. While every effort has been made to ensure the accuracy of the information contained herein, it is not intended to serve as “legal advice,” or to establish an attorney-client relationship. If additional information is needed on any of the topics contained herein, please contact our office. All rights reserved. ©2025.