Internship Agreement

What Is an Intern?

An intern is usually a student or recent graduate who provides services to an organization for a limited time in exchange for practical experience. Internships are meant to be educational—they are not a substitute for regular employees. Interns must not take on core functions or displace paid workers.

Internships typically last 3 to 6 months, though academic programs may dictate longer or shorter terms depending on credit requirements.

 

Legal Requirements: The Primary Beneficiary Test

To comply with U.S. labor laws, unpaid internships must pass the “primary beneficiary test”. This means the intern—not the employer—must primarily benefit from the experience. The Department of Labor uses the following criteria:

1. The internship communicates no expectation of pay
2. The intern receives training in a similar educational environment.
3. The experience is tied to the intern’s academic program
4. The schedule accommodates the intern’s academic calendar.
5. The internship is limited in duration to the learning period.
6. The intern’s work complements, rather than replaces, paid staff.
7. There is no guarantee of a job after the internship 

 

How to Find and Onboard Interns (Step-by-Step)

1. Post the Internship Opportunity

Use job and internship platforms such as:

• LinkedIn
• Indeed
• Internships.com
• WayUp
• Social media (e.g., Facebook, Instagram, Twitter)

Make sure your listing:

• Clearly states that it is unpaid
• Includes a start/end date
• Highlights learning outcomes and responsibilities
• Mentions any academic credit eligibility

2. Review Applications

As applications come in, look for alignment between the candidate’s educational background and your internship offering. You should also evaluate writing, communication skills, and interest in your field or mission.

3. Conduct Interviews & Gather Documentation

Interview candidates either in person or virtually. Ask about:

• Their academic studies and goals
• Why are they interested in the internship
• What they hope to learn

Once a candidate is selected, collect:

• Form I-9 (Employment Eligibility Verification)
• Background check consent (if required)
• Non-Disclosure Agreement (NDA)

4. Make an Offer

After choosing the right fit, send a simple offer letter with:

• The internship title
• Start and end dates
• Weekly schedule expectations
• Confirmation that the internship is unpaid

5. Sign the Internship Agreement

A well-drafted internship agreement should include:

• Names and contact information of both parties
• Intern’s title and learning goals
• Scope of duties
• Internship term and working hours
• Any educational requirements or credit arrangements
• Termination clause (right to end the internship early) 

 

Legal Protections for Interns

No federal law guarantees protection for unpaid interns, meaning they are often not covered under anti-discrimination or harassment laws.

However, several states do extend protections, including:

• California, Connecticut, Illinois, Maryland, New York, Oregon, Texas, Vermont, Washington (state and D.C.) 

Case Example: Wang v. Phoenix Satellite
This 2014 case highlighted the legal vulnerability of unpaid interns. The court ruled against the intern’s harassment claims due to a lack of protections under New York’s laws at the time. This prompted local law reforms to extend protections to unpaid interns in NYC.

 

What’s Allowed for Internship Contracts

Allowed:

• Training focused on education
• Flexible schedules that work around class time
• Clearly defined, supervised tasks
• School-approved credit opportunities

Not Allowed:

• Promising future employment or payment
• Using interns to fill vacant paid roles
• Assigning tasks unrelated to academic learning
• Requiring them to work during school hours
• Paying interns without converting them to employees

Note: If you pay an intern, they’re no longer classified as an intern—they become an employee under the law and are entitled to wages and benefits.

 

Internship Agreement Template: How to Complete

Using our online template, complete these sections:

1. The Parties – Names and addresses of the employer and intern
2. Position & Responsibilities – Job title and list of tasks
3. Term – Start and end date (or termination with notice)
4. Schedule – Weekly hours, holidays off, workdays
5. Governing Law – The state whose laws apply
6. Additional Terms – Special provisions like academic flexibility or supervisor contact
7. Signatures – Signed and dated by both parties