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Internship Agreement (Paid / Unpaid with Compliance Guardrails)
An internship agreement that sets scope, pay, IP assignment, and confidentiality, with the DOL primary-beneficiary factors built in so an unpaid internship is defensible.
What is an Internship Agreement?
An Internship Agreement (Paid / Unpaid with Compliance Guardrails) sets the scope, pay, IP assignment, and confidentiality for an intern, and it builds in the DOL primary-beneficiary factors so that an unpaid internship is defensible.
Companies and nonprofits taking on interns, especially students. Unpaid internships at for-profits are legally risky unless structured correctly.
Internship Agreement template, current for 2026
It bakes in the DOL 'primary beneficiary' seven-factor test (the current standard, which replaced the old six-factor test) and warns that unpaid internships at for-profit companies are the narrow exception. Paid interns get minimum-wage and overtime compliance. The agreement coordinates academic credit, scales IP assignment and confidentiality to a short engagement, states that the internship is at-will with no guarantee of employment, carries a work-authorization acknowledgment (and a child-labor-hours acknowledgment for minors), and says explicitly that there are no employee benefits and no workers' comp.
How HDAi does this differently
Unlike a static form, HDAi runs a guided interview and assembles your Internship Agreement as you answer. When you want it finished, a licensed Hart David Carson attorney reviews it and tailors it to your facts before you sign. The interview and the first draft are automated. The judgment belongs to an attorney.
What you’ll be asked
A short interview in plain language that asks only what this document needs.
- Company / host organization The employer or organization hosting the internship. This is the party offering the position and, if paid, paying the intern.
- Intern The individual being engaged as an intern. If the intern is under 18, additional child-labor and minor-consent rules apply.
- Is the intern under 18 years of age? Minors trigger federal and state child-labor rules (hours, hazardous-occupation limits) and typically require a parent/guardian co-signature.
- Parent / legal guardian name (if intern is a minor) Required so a parent or guardian can co-sign and consent on behalf of a minor intern.
- Does the minor intern need a work permit (employment/age certificate)? Many states require minors to obtain an employment or age certificate before starting work, and impose daily, weekly, and school-day hour limits plus prohibited-occupation rules. Confirm the requirement for the worksite state.
- Internship position title The title used to describe the role, e.g., 'Marketing Intern' or 'Software Engineering Intern.'
- Department or team Where the intern will work within the organization; helps define scope and supervision.
- Supervisor / mentor name and title The person responsible for supervising, mentoring, and evaluating the intern. A named mentor supports the DOL 'training' and 'supervision' factors for unpaid internships.
- Is this a paid or unpaid internship? Determines which compliance framework applies. Unpaid internships in the for-profit sector must satisfy the DOL 'primary beneficiary' test; paid internships must meet minimum-wage and overtime rules.
- Pay rate The gross rate before taxes. Must meet or exceed the higher of federal, state, or local minimum wage for paid interns.
- Pay basis How the pay rate is measured. Hourly is generally safest for wage-and-hour compliance for non-exempt interns.
- How often is the intern paid? Payroll cadence. Must comply with your state's pay-frequency law.
- Is the paid intern non-exempt (overtime-eligible)? Most interns are non-exempt and must receive overtime for hours over 40/week. Choosing 'exempt' requires meeting a bona fide FLSA exemption, which is rare for interns.
- Include a statutory wage / pay-transparency notice acknowledgment? Several states (for example New York and California) require a written wage-rate or pay-transparency notice to new hires stating rate, basis, payday, and employer identity. Include an acknowledgment if the worksite state requires one.
- For unpaid internships, confirm the intern acknowledges no wages or entitlement to future employment The DOL test asks whether both parties understand there is no expectation of compensation or a guaranteed job. A written acknowledgment supports factors 1 and 7.
- Will the intern receive academic credit? Tying the internship to a formal educational program and academic credit strongly supports several DOL primary-beneficiary factors for unpaid internships.
- Educational institution name The school or program granting credit or coordinating the internship. Referenced to align the internship's calendar and learning objectives with the academic program.
- Number of academic credits / credit hours Documents the educational integration for DOL factor 4 (accommodating the academic calendar) and factor 3 (tied to coursework).
- Internship start date The first day of the internship term.
- Internship end date The scheduled last day. A fixed, limited duration supports the DOL factor that the internship is limited to the period of beneficial learning.
- Expected hours per week Sets scheduling expectations. For unpaid interns, hours should track the educational purpose; for paid non-exempt interns, hours over 40 trigger overtime.
- Work schedule / days and any flexibility Describe the expected days and any flexibility to accommodate exams and coursework (supports the DOL academic-calendar factor).
- Work location arrangement Where the intern performs the work. Remote or hybrid arrangements may implicate the laws of the intern's location.
- Primary work address (if on-site or hybrid) The physical worksite. Governs local child-labor, safety, and wage rules.
- Who provides equipment for remote/hybrid work? For remote or hybrid interns, choose between Company-supplied equipment and the intern's personal device (BYOD). BYOD requires added security and data-handling controls.
- Learning objectives / training the intern will receive This is the central DOL factor. The internship must provide training similar to an educational environment and benefit the intern. Be specific about skills, mentorship, and structured learning.
- Duties and projects the intern will perform Describe the intern's responsibilities. For unpaid internships, duties should complement, not displace, paid staff, and should serve the intern's learning rather than the employer's routine operations.
- For unpaid internships, confirm the intern does not displace paid employees and the work is closely supervised DOL factor 6: the intern's work must complement rather than displace paid workers while providing significant educational benefit. This acknowledgment strengthens defensibility.
- Should the intern assign IP created during the internship to the Company? Assigns ownership of inventions, code, designs, and other work product created in the scope of the internship to the Company, with a present assignment and further-assurances language.
- Intern's pre-existing inventions to exclude from assignment (optional) List any inventions the intern created before the internship that should be carved out of the assignment. Leave blank if none.
- Include a moral-rights waiver and work-made-for-hire language? Reinforces the Company's ownership of creative work by designating it work made for hire where applicable and waiving moral rights to the extent permitted by law.
- Include confidentiality obligations? Protects the Company's confidential and proprietary information the intern may access. Standard and strongly recommended.
- How long do confidentiality obligations survive after the internship ends? The survival period for confidentiality. Trade secrets are typically protected for as long as they remain secret; other confidential information for a fixed number of years.
- Will the intern handle sensitive or regulated data? If the intern may access personal, financial, health, or other regulated data, include a data-handling covenant tying the intern to the Company's security and privacy policies and applicable law.
- Is the host public or pre-IPO (add an insider-trading acknowledgment)? If the Company or its clients are public or preparing to go public, include an acknowledgment that the intern will not trade on or tip material nonpublic information and will follow insider-trading policies.
- Is the intern an international student (F-1 / J-1)? International students generally need CPT, OPT, academic training, or other authorization before working. Include a work-authorization condition if the intern is on an F-1 or J-1 visa.
- Include a non-solicitation covenant (employees / customers)? Restricts the intern from soliciting the Company's employees or customers for a period after the internship. Enforceability varies by state; keep narrow.
- Non-solicitation duration after the internship The post-internship period during which the non-solicit applies. Shorter is more defensible.
- Does the governing state heavily restrict restrictive covenants for low-wage/student workers? Some states (for example California, and states with low-wage thresholds) void or heavily limit non-solicits for interns. Select 'restricted' to add a state-limits savings clause acknowledging the covenant may be unenforceable there.
- Does the intern receive any benefits? Says whether the intern is offered any benefits (e.g., a stipend for expenses or transit). Interns are generally not eligible for employee benefit plans, so be clear to avoid ambiguity.
- Describe the limited benefits provided Specify exactly what is provided (e.g., commuter reimbursement, meal stipend) so there is no expectation of full employee benefits.
- Confirm the internship is terminable at will by either party? Clarifies that either party may end the internship at any time, with or without cause or notice, reinforcing that no employment relationship or future-job guarantee exists.
- Governing law, U.S. state The state whose law governs the agreement and whose wage, child-labor, and restrictive-covenant rules apply. Spell the state name in full (e.g., California, Illinois, Washington) so the correct employee-invention statute and notice are inserted.
- Dispute resolution mechanism How disputes are resolved. Arbitration can be faster and private; courts allow public remedies. For minors, arbitration clauses may face enforceability challenges.
- Arbitration administrator (if arbitration) The organization that will administer the arbitration and whose rules apply.
- Is the internship conditioned on a background check? If the offer depends on passing a background check or other screening, disclose it. Triggers FCRA disclosure/authorization requirements when a third-party screener is used.
- Any additional terms or special provisions? Anything else specific to this internship, such as dress code reference, equipment return, policies incorporated by reference, and the like.
Frequently asked
About the Internship Agreement and how HDAi works.
What is an Internship Agreement (Paid / Unpaid with Compliance Guardrails)? +
An Internship Agreement (Paid / Unpaid with Compliance Guardrails) is an agreement that sets the scope, pay, IP assignment, and confidentiality for an internship, with the DOL primary-beneficiary factors built in so an unpaid internship is defensible. Companies and nonprofits taking on interns, especially students, use it. Unpaid internships at for-profits are legally risky unless they are structured correctly.
Is HDAi's Internship Agreement (Paid / Unpaid with Compliance Guardrails) legally binding? +
The Internship Agreement (Paid / Unpaid with Compliance Guardrails) HDAi generates is a professionally drafted document that becomes binding once it is completed, reviewed, and properly signed. If you want a licensed Hart David Carson attorney to finish it, book a planning call. The firm's flat-fee packages, the Illinois Family Plan and Company Launch, cover the most common needs; for any other draft, an Illinois attorney will tell you on the call what finishing it would involve.
Do I need a lawyer to use this Internship Agreement (Paid / Unpaid with Compliance Guardrails)? +
You can generate and download the Internship Agreement (Paid / Unpaid with Compliance Guardrails) in minutes, free of charge. A licensed Hart David Carson attorney can then review it and tailor it to your facts before you sign, which is the part no template can do.
What makes this Internship Agreement (Paid / Unpaid with Compliance Guardrails) current for 2026? +
The DOL 'primary beneficiary' seven-factor test is built in (it is the current standard and replaced the old six-factor test), with a warning that unpaid internships at for-profit companies are the narrow exception. Paid interns are covered by minimum-wage and overtime compliance. It also coordinates academic credit, scales the IP assignment and confidentiality to a short engagement, keeps the internship at-will with no guarantee of employment, adds work-authorization and, for minors, child-labor-hours acknowledgments, and states explicitly that no employee benefits or workers' comp attach.
How long does the Internship Agreement (Paid / Unpaid with Compliance Guardrails) take? +
Estimated time about 24 min (47 questions), depending on how much you already know. The document assembles as you answer. Export it as PDF or Word, or send it to a Hart David Carson attorney for review.
Does this Internship Agreement (Paid / Unpaid with Compliance Guardrails) work in my state? +
HDAi's interview is state-aware. If you ask an attorney to finish the draft, a licensed Hart David Carson attorney confirms it against your state's requirements before you rely on it. Validity and required formalities vary by state.
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