Unpaid Internships in Nevada: When They’re Legal and When They’re Not

Internships provide valuable opportunities for students and recent graduates to gain practical experience, develop professional skills, and explore potential career paths.

Many Nevada employers including private companies, nonprofit organizations, and government agencies offer internship programs throughout the year.

Some internships are paid, while others are unpaid.

Although unpaid internships can be lawful in certain situations, employers cannot simply classify someone as an “intern” to avoid paying wages. Whether an unpaid internship complies with the law depends on the facts of the relationship and the applicable legal standards.

Understanding when unpaid internships are permitted can help both interns and employers avoid costly legal disputes.

Key Takeaways

• Not every unpaid internship is lawful under federal or Nevada employment laws.
• Whether an intern must be paid depends on the nature of the internship and applicable legal standards.
• Employers should carefully structure internship programs to comply with wage and hour requirements.
• Interns who primarily perform productive work for an employer may have rights to compensation depending on the circumstances.

Are Unpaid Internships Always Legal?

No.

An internship is not automatically lawful simply because both the employer and the intern agree that it will be unpaid.

Federal wage and hour laws, including the Fair Labor Standards Act (FLSA), establish legal standards that help determine whether an individual participating in an internship should be treated as an employee entitled to wages.

Nevada employers should also consider applicable state employment laws when designing internship programs.

Why Does the Law Distinguish Between Employees and Interns?

Employment laws generally require employers to pay employees for the work they perform.

Internships are different because they are often designed primarily as educational experiences rather than traditional employment.

The central question is frequently whether the internship primarily benefits:

• The intern
• The employer
• Both parties

Courts and government agencies evaluate internship arrangements by examining the overall relationship rather than relying solely on job titles or written agreements.

The Primary Beneficiary Test

One of the most important legal standards used to evaluate unpaid internships is commonly known as the Primary Beneficiary Test.

Rather than focusing on a single factor, the test considers the entire relationship between the intern and the employer to determine who is the primary beneficiary of the internship.

Factors commonly considered include:

• Whether the internship provides educational training similar to an academic environment
• Whether the internship is connected to the intern’s formal education
• Whether the internship accommodates the intern’s academic commitments
• The expected duration of the internship
• Whether the intern’s work complements rather than replaces paid employees
• Whether both parties understand there is no expectation of wages
• Whether the internship is conducted without an expectation of future employment

No single factor determines whether an internship is lawful. Instead, the circumstances are evaluated as a whole.

When Might an Intern Be Entitled to Wages?

An intern may have wage rights if the facts indicate that the individual is functioning more like an employee than a trainee.

Examples of situations that may raise legal questions include:

• Performing the same work as paid employees
• Replacing regular employees
• Producing work that primarily benefits the employer
• Working extended hours without meaningful educational training
• Receiving little or no supervision
• Performing routine operational tasks unrelated to learning objectives

Whether wages are legally required depends on the complete circumstances and the applicable legal standards.

Are Academic Internships Different?

Many internship programs are coordinated through colleges and universities.

Academic internships often involve:

• Course credit
• Faculty oversight
• Learning objectives
• Periodic evaluations
• Structured educational experiences
• Limited duration

Although academic involvement may support the educational nature of an internship, receiving college credit alone does not automatically determine whether an unpaid internship complies with wage and hour laws.

Each internship should be evaluated based on its individual facts.

Can Nonprofit Organizations Offer Unpaid Internships?

Nonprofit organizations frequently provide internship opportunities.

However, nonprofit status alone does not automatically exempt an organization from wage and hour laws.

Whether an unpaid internship is lawful depends on the nature of the internship, the work being performed, and the applicable legal standards rather than the employer’s tax status.

What Records Should Interns Keep?

If questions later arise regarding compensation or employment status, interns should consider keeping copies of:

• Internship agreements
• Offer letters
• Job descriptions
• Work schedules
• Time records
• Emails
• Training materials
• School internship documents
• Performance evaluations
• Communications with supervisors

Maintaining organized records may be helpful if a dispute develops regarding wages or employment status.

Employer Responsibilities

Employers offering internship programs should carefully evaluate whether an unpaid internship complies with applicable wage and hour laws before the internship begins.

A well-designed internship program generally emphasizes education, mentorship, and professional development rather than using interns as a source of free labor.

Employers should consider:

• Establishing clear learning objectives
• Providing meaningful supervision
• Offering structured training opportunities
• Coordinating with educational institutions when appropriate
• Limiting internship duration to educational goals
• Clearly documenting the nature of the internship
• Periodically reviewing internship programs for legal compliance

Taking these steps may help employers reduce legal risks while providing valuable educational experiences for interns.

Can Employers Misclassify Interns?

Simply calling someone an “intern” does not determine their legal status.

If an individual performs work that is substantially similar to that performed by paid employees, an employer may face questions regarding whether that individual should have been treated as an employee rather than an unpaid intern.

Potential issues may arise when interns:

• Perform routine operational work
• Replace paid employees
• Receive little educational instruction
• Generate substantial business value for the employer
• Work independently with minimal supervision
• Continue working for extended periods without meaningful training

Whether misclassification has occurred depends on the entire working relationship and the applicable legal standards.

Retaliation Against Interns

Some interns may hesitate to ask questions about wages or workplace practices because they fear losing valuable experience or future employment opportunities.

Depending on the circumstances, retaliation against an individual for engaging in protected activity may violate applicable employment laws.

Examples of retaliation may include:

• Ending the internship prematurely
• Refusing academic evaluations
• Negative references based solely on protected activity
• Denying educational opportunities
• Threatening future employment consequences
• Harassment after raising legal concerns

Whether retaliation has occurred depends on the applicable law and the facts surrounding the employer’s actions.

Nevada Wage and Hour Considerations

Employers operating internship programs in Nevada should consider both federal wage and hour requirements and applicable Nevada employment laws.

Issues that may require careful review include:

• Minimum wage requirements
• Overtime eligibility
• Employee classification
• Recordkeeping obligations
• Payroll practices
• Employment agreements
• Workplace policies

Whether wages are owed depends on the nature of the internship and the applicable legal standards governing the relationship.

Best Practices for Internship Programs

Employers seeking to establish lawful internship programs should consider implementing practices that reinforce the educational purpose of the internship.

Examples include:

• Creating written internship agreements
• Defining educational objectives
• Providing regular mentoring
• Offering meaningful feedback
• Coordinating with colleges or universities when appropriate
• Avoiding assignments that replace regular employees
• Evaluating internship programs periodically for legal compliance

These practices can help create a positive learning environment while reducing the likelihood of disputes over compensation.

Why Legal Guidance Can Be Helpful

Questions regarding unpaid internships often involve detailed analyses of wage and hour laws, employment relationships, and the specific facts surrounding the internship.

An employment attorney can review:

• Internship agreements
• Training programs
• Job duties
• Time records
• Educational requirements
• Employer policies
• Compensation practices

This review may help determine whether an internship was properly classified and whether wage obligations may apply.

Frequently Asked Questions

About Milan Chatterjee

This article was prepared by Milan Chatterjee, a Nevada and California licensed attorney and founder of Best Employment Attorney, the dedicated employment law practice of Milan Legal.

Milan represents employees and employers throughout Las Vegas, Reno, and across Nevada in workplace disputes involving wage and hour violations, unpaid wages, employee misclassification, internship programs, employment agreements, retaliation, and compliance with Nevada Revised Statutes Chapter 608, as well as federal employment laws, including the Fair Labor Standards Act (FLSA).

He earned his Juris Doctor from UCLA School of Law and also studied at New York University School of Law as a visiting student. Before entering private practice, Milan served as Associate Compliance Counsel at Las Vegas Sands Corporation, where he advised on employment policies, compensation practices, workplace compliance, internal investigations, and enterprise risk management.

Today, Milan combines that corporate legal experience with a focused employment law practice, helping employees protect their workplace rights while advising employers on compliance with Nevada and federal employment laws.

Conclusion

Unpaid internships can provide valuable educational opportunities when they are properly structured and focused on the intern’s learning and professional development. However, not every unpaid internship is legally permissible.

Whether an intern should be paid depends on the entire relationship between the intern and the employer, including the educational value of the internship, the work performed, and the applicable federal and Nevada employment laws.

Employees and employers who understand these legal standards are better positioned to develop compliant internship programs and avoid disputes regarding wages and employment classification.