Must an internship be paid?  

Internships with for-profit companies should be paid or the company needs to carefully determine if unpaid positions can qualify under Federal and California labor code.  

Unpaid student employment will not violate the Fair Labor Standards Act and California labor code if it is a training program which meets the following criteria:

1) The training should be similar to that given in a vocational setting

2) The experience is for the benefit of the student

3) Students do not displace regular employees

4) The employer provides the training and receives no immediate advantage from the activities of students

5) Students are not necessarily entitled to a job at the conclusion of the training period

6) The employer and student understand that the student is not entitled to wages for the time spent in training  

Government and non-profit community organizations can offer unpaid internships. However, if your organization is able, we certainly encourage you to consider offering compensation. This may help you attract more quality candidates, as well as solidify time commitments from interns.