Tuesday, August 27, 2013

Unpaid Internships in California

Unpaid Internships have very strict California rules and Federal laws that businesses who offer them have to adhere to. The most important qualifier and determinant for legal unpaid internships is if it is built around providing a truly educational environment. Unfortunately, the perception of interns from businesses has been that internships provide a short term and no cost or below minimum wage free form of labor. However, attorneys ascertain that nothing can be further from the truth.

Even interns themselves have an unwarranted view of internships. Many students pursuing internships are unaware of the fact that performing job duties that displaces another worker is in fact illegal.  Not only does the government miss out on the lost taxes due but also the intern is unfairly not paid for work performed that didn't provide the educational value supposed.

Lawsuits File by Unpaid Interns


Lawyers in California that regularly handle employment matters have seen a jump in cases and lawsuits filed by interns. Even if an intern has voluntarily agreed to an unpaid internship, it is illegal in California if the internship is not of an educational nature. Only non-profit organizations and public employers (a.k.a. government entities) can provide unpaid internships. All private employers should assess the internship on the Fair Labor Standards Act (FLSA) six factor test below to decide on whether it should be paid or unpaid.

6 Factor Legal Assessment for an Unpaid Internship:

  1. Does the internship provide an educational experience as opposed to being related to an employer's actual operations?
  2. Does the internship benefit the intern? The internship should not primarily benefit the employer, but rather the intern. Most of the time, unpaid internships that are lawful are burdensome to the employer.
  3. Does the intern work alongside other employees, such as in shadowing? The intern should not displace another worker and provide very little or no work at all.
  4. Does the intern not provide an immediate advantage or service to the employer? According to law, an intern should not perform any tasks, even as small as getting coffee, mail pickup, or do any errands.
  5. Does the intern know there is no job guaranteed at the end of the internship?
  6. Does the employer and the intern understand and accept that they are not entitled to wages for a legally compliant unpaid internship? Of course, for the unpaid internship to be legally compliant it has to pass the previous five questions with a "yes" answer.
The business, financial and IT fields have the highest demand for interns across the nation and in California. In Los Angeles, the creative fields have the highest demand for interns because it is the dominating industry. Civil Lawyers in California are seeing and expect to see many more lawsuits filed for unpaid internships as public awareness of state and federal laws regarding internships grows. Especially, since interns can file lawsuits for unpaid wages during an internship for up to three years. California lawyers are handling an influx of wage and hour lawsuits regarding internships not just unpaid wages but also unpaid overtime worked during the internship and even damages for meal and rest break violations.

When an intern is improperly placed in an unpaid internship, Federal and California labor rules and laws apply to that employee. Therefore, the employer is subject to all associated fines and penalties for any labor law violations and the employee can receive monetary damages as a result.

Common Internships Offered:

  • Internship - In California, this is most likely to be an illegal unpaid internship.
  • College Internship - It is also likely that this should be a paid internship.
  • Student Internship - This is also likely to be an unpaid internship that should be paid.
  • Marketing Internship
  • Pharmacy Internship
  • Information Technology Internship
  • Software Engineering Internship
  • Sales Internship
  • Accounting Internship
  • Management Trainee Internship
  • Human Resources Internship

An internship advertised in a job or career website in a general manner, such as "intern", is very likely to be an illegal unpaid internship due to the very nature in which it is advertised. Especially, if the advertisement talks of no educational value and does not imply all the characteristics of the six factor test above. Many employers advertising for internships even state the required skills, such as Microsoft Office, SQL, Java, Linux, and Customer Relationship Management. These internships probably advertise skills because the private employer expects the intern to work in this capacity and in a way that benefits the employer. These internships should be paid as it would not pass the six factor test set out by the FLSA.

If you need expert help in assessing whether an internship should have been or should be paid or unpaid and are located in California, call our lawyers at 855-200-ATTY (855-200-2889) or visit the lawyers' website and fill out our confidential online form.

Monday, August 5, 2013

Work Laws in California

There are many federal and California laws regarding how and when work is to be performed. Work laws apply to all employees, regardless of citizenship status and documentation. Below are the laws causing the most work place disputes experienced by attorneys in California.

Work Laws in California include:

  • Meal and Rest Breaks - Employers must provide meal breaks. However, after the meal break is given employers are not obligated to ensure employees are not doing any work. Workers get a meal break, at least 30 minutes long, for every 5 hours worked. Workers also get a 10 minute rest break for every 4 hours worked, within the 4 hours. A nonexempt employee gets a 10 minute break for at least 3.5 hours worked. Rest breaks must be paid.
  • Overtime -  Employers can require employees to do overtime work. Workers must be paid overtime pay when working either more than 8 hours per day or 40 hours per week. Overtime pay is one and a half times the hourly pay rate for work performed up until 12 hours in a day. Overtime pay is double the hourly pay rate for all work done exceeding 12 hours in a day. Overtime pay can apply to both hourly workers and salary workers, but you must be a non-exempt worker to qualify. Laws on overtime work apply to anyone age 16 and over.
  • Schedule - An employer has the right to schedule non-exempt employees, which are generally hourly workers.
  • Uniforms & work related expenses - Employers cannot make deductions for a uniform that a worker must wear. Employers must pay for uniforms worn and all tools or expenses required to perform work duties. A "uniform" can include clothing and or accessories of a distinctive design or color.
  • Minimum wage - In California, the minimum wage is $8.00. The minimum wage is the same for non-tipped and tipped workers, such as waiters, waitresses, bartenders and more. 
  • Drug Testing - Work laws prohibit random drug testing, except under specific circumstances.
  • Social Media - Employers are prohibited from requiring or requesting "social media" usernames or passwords.
  • Commission - Commission plans must be set forth in writing including the method for calculating commissions as well as payment.
  • Religious Dress and Grooming - New labor laws prohibit discrimination against persons with religious attire, head or face coverings, jewelry and artifacts, and any head or body hair in adherence to a person's religion.
  • Worker Records - Workers have the right to inspect their own personnel record or file and make any copies. Employers are required to either make a copy of the entire file or make it entirely available within 30 days of the request.
  • Seating - For all work that reasonably permits the use of seats, employers are required to provide suitable seats. This new law applies retail employees only, but similar laws already exist for other industries.
Most work related disputes are resolved through negotiation, mediation, and arbitration by civil attorneys representing both parties, the plaintiff and the defendant. When a civil attorney representing the plaintiff cannot get a satisfactory result through any of the three methods mentioned, the attorney will move on to litigation in court. Litigation in a civil law court room can be very costly, but the plaintiff who is usually the worker, does not pay for attorney fees. The civil attorney defending the worker will charge the client a percentage of what the attorney wins and only if there is a victory. Top attorneys get the most wins without the use of litigation in a lawsuit over a work violation.

California has the highest immigrant work force in the nation, many undocumented or illegal. Many employers assume immigrants aren't familiar with laws covering work. Attorneys counsel the most on employment cases revolving around overtime pay, minimum wage, and breaks at work performed by immigrants.