California Court Confirms Unpaid Interns Have Standing to Pursue Claims Under the Fair Employment and Housing Act, Even When Doing So as Part of a School Program

Many entities operate intern programs. Some, particularly educational institutions, do so without pay. Because of the potential risk of claims for unpaid wages and penalties, employers should always consult with legal counsel before engaging the services of anyone, even interns, without pay to ensure compliance with local, state, and federal wage and hour laws. However, a recent appellate court decision highlights another issue for consideration when engaging interns, specifically, potential liability for harassment, discrimination, and/or retaliation. Attempting to “provide needed clarity,” the California Court of Appeal for the Fourth Appellate District confirmed that unpaid interns have standing to pursue such claims under the Fair Employment and Housing Act and that they maintain standing even when part of a school program and even when working offsite if the entity offering the internship supervises and/or controls the intern’s work.