Are unpaid internships legal in the US?
An unpaid internship can be legal in the US, but not automatically. The Department of Labor says for-profit employers must pay employees, and that interns may not be employees under the Fair Labor Standards Act (FLSA) when the internship mainly benefits the intern. Courts decide this with a flexible "primary beneficiary" test.
This is general information, not legal advice. Rules differ by situation and can change. For a specific case, contact the Department of Labor's Wage and Hour Division or a licensed attorney.
At a glance
- US federal rules as of 31 October 2026 are summarized from DOL Fact Sheet 71.
- If an intern is an employee, the employer owes minimum wage and overtime. If not, neither applies.
- No single factor decides the answer.
- Labels such as "intern" or "volunteer" do not decide it either.
- State laws may add rules. Check yours.
What is the primary beneficiary test?
The Wage and Hour Division describes a test that asks who benefits more from the arrangement, the intern or the employer. It lists seven factors:
| Factor | What it asks |
|---|---|
| 1. Expectation of pay | Do both sides understand that no pay is expected? Any promise of pay, express or implied, suggests the intern is an employee |
| 2. Training | Is the training similar to what an educational institution would give, including hands-on clinical work? |
| 3. School link | Is the internship tied to a formal education program through coursework or academic credit? |
| 4. Calendar | Does it fit around the intern's academic commitments and school calendar? |
| 5. Duration | Does it last only as long as it provides beneficial learning? |
| 6. Displacement | Does the intern's work complement paid staff rather than replace them, while giving significant educational benefits? |
| 7. No job promise | Do both sides understand the internship does not guarantee a paid job afterward? |
The Department says the test is flexible and that "no single factor is determinative." The more factors point toward the intern, the more likely the internship is lawful without pay.
What if the intern is an employee?
If the arrangement makes the intern an employee under the FLSA, the intern is entitled to minimum wage and overtime pay. If the intern is not an employee, the FLSA gives neither. That is why the wording of an offer, the actual tasks and the school connection all matter.
What should you check before accepting an unpaid internship?
- Read the offer. Does it state dates, hours, supervisor and learning goals?
- Look for a school link. Will you get academic credit, or does your program require it?
- Compare the tasks to the factors. If you will do the same work as paid staff, such as covering a shift or filling a role, that points toward employee status.
- Ask about the end. A good internship ends when the learning does, without a promise of a job.
- Ask whether other interns are paid. A paid track may exist.
- Get it in writing. Save emails, schedules and the offer.
If something feels wrong, you can contact the Wage and Hour Division. Before you accept, also run a suspicious posting through the 10-point fake posting check.
What about nonprofits and government?
The Fact Sheet concentrates on for-profit employers. Rules for public agencies and nonprofits can differ, and volunteering rules are separate. Ask the organization to explain the arrangement and check with your school.
How do paid and unpaid internships compare for you?
A paid internship gives income and clear employee protections. An unpaid, credit-bearing internship can still be valuable if the learning is real and your school approves it. Weigh the cost of living, your school's credit policy and the alternatives. Our guide on how to find an internship in the US covers where to look, and internship vs apprenticeship covers a paid training route.
Frequently asked questions
Can an internship be unpaid if I get college credit? Credit is one of the factors, not a guarantee. Look at all seven.
Do remote interns have the same rules? The test looks at the arrangement, not the location.
Can an employer require me to work unpaid for a trial period? If you are doing real work for an employer, you may be an employee. Ask the Wage and Hour Division if unsure.
What if I already worked unpaid? Keep records and contact the Wage and Hour Division or an attorney.
Does this apply outside the US? No. This page covers US federal rules only.
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