Internships are a fantastic way for companies to bring in fresh talent, infuse new ideas into their teams, and provide students or recent graduates with valuable hands-on experience. However, hiring interns in California comes with specific legal requirements and best practices that employers need to follow.
Navigate hiring interns in California with this expert guide prepared to help employers save time and avoid costly mistakes during the hiring process.
Table of Contents
- Understanding regulations that apply to hiring interns in California
- Paid internships in California
- Unpaid internships in California
- Onboarding and managing interns in California
- Conclusion
Understanding Regulations that Apply to Hiring Interns in California
California has strict labor laws, and employers must ensure that their internship programs comply with state and federal regulations. Generally, interns can be categorized as either paid or unpaid, with California having different internship laws for each category.
Paid Internships in California
Paid internships are the most straightforward option for companies, whereby interns are considered employees and must be compensated at least the state minimum wage. Employers must:
- Follow State wage and hour guidelines. It is important to remember that if the intern is under 18 years of age, employers must acquire work permits and be mindful of child labor laws regarding when and how much the intern can work, based on their age.
- Provide workers’ compensation coverage.
- Comply with tax and employment regulations.
Unpaid Internships in California
Although unpaid internships are legal in California, employers need to proceed with caution because interns are considered employees in the eyes of the law, which means employers are required to comply with wage and hour laws, including paying them at least minimum wage.
For employers hiring interns in California, the primary beneficiary test can help you determine if an individual can be classified as an unpaid intern. Key requirements and factors that constitute the test are as follows:
- The intern and the employer clearly understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee.
- The internship provides training similar to that given in an educational environment, including the clinical and other hands-on training provided by educational institutions.
- The internship is tied to the intern’s formal educational program through integrated coursework or the receipt of academic credit.
- The internship accommodates the intern’s academic commitments by corresponding to the academic calendar.
- The internship’s duration is limited to the period during which the internship provides the intern with beneficial learning.
- The intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.
- The intern and the employer understand that the internship is conducted without entitlement to a paid job after the internship.
Failure to meet these key requirements and factors could result in misclassification issues and legal penalties. In addition, the following protections apply to unpaid interns in California:
- Protections against harassment.
- Protections against discrimination in an unpaid internship.
- Protections for religious beliefs, as well as religious accommodation requirements during an unpaid internship.
Onboarding and Managing Interns in California
Once you’ve selected interns to join your team, it’s crucial to provide them with a smooth onboarding process and a productive work environment. To become compliant, consider implementing the following steps:
- Offer Training: Provide orientation sessions to familiarize interns with company policies and expectations, as well as required training programs.
- Assign Mentors: Pair interns with experienced employees who can offer guidance and career advice.
- Provide Feedback: Conduct regular check-ins to ensure interns stay engaged and can improve their skills.
Hiring interns in California can benefit both your company and young professionals eager to enter the workforce. By following this guide, offering a structured experience, and maintaining a positive work environment, you can develop an effective internship program that attracts talented individuals and helps them grow.
Have questions about Internships before hiring your summer interns? Reach out to Bizhaven; our experts are happy to assist you!
