THE SENATE	S.B. NO.	988
THIRTY-FIRST LEGISLATURE, 2021		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO LABOR.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that upholding labor laws and the minimum wage requirements are of the highest priority in the State. The legislature recognizes that since 2018, the United States Department of Labor has put forth additional guidelines to ensure individuals are not being taken advantage of by companies under the guise of offering unpaid internships. However, these guidelines have not yet been codified in the United States Code Annotated, nor have they been incorporated into the Hawaii Revised Statutes. The legislature further finds that unpaid internships at for-profit companies or institutions must be carefully regulated.

Accordingly, the purpose of this Act is to create clear guidelines for establishing unpaid internships under the federal Fair Labor Standards Act.

SECTION 2. Chapter 388, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§388-   Educational internships; program criteria. (a) All unpaid internships are prohibited except educational internships. To be classified as an unpaid student internship under this chapter, an internship program shall meet the following criteria:

(1) The training is similar to training provided in an educational program, regardless of whether it includes actual operation of the employer's facilities;

(2) The training is for the benefit of the intern;

(3) The student works under close supervision and does not displace regular employees;

(4) The activities of the student do not provide an immediate advantage to the employer;

(5) The student is not entitled to a job at the conclusion of the training period and may take a job elsewhere in the same field;

(6) The student is notified in writing that the student shall not receive any wages and is not considered an employee for minimum wage purposes;

(7) Any clinical training is performed under the supervision and direction of a person who is knowledgeable and experienced in the activity;

(8) The student does not receive employee benefits;

(9) The training is general and qualifies the student to work in any similar business; provided that the training shall not be designed exclusively for a job with the employer who offers the program;

(10) The screening process for the internship program:

(A) Is not the same as for employment and does not have the appearance of being for that purpose; and

(B) Only uses criteria relevant for admission into an independent educational program; and

(11) Advertisements, postings, or solicitations for the program clearly discuss education or training rather than employment, although employers may indicate that qualified graduates may be considered for employment.

(b) For the purposes of this section, "student" means any person enrolled at least part-time in a course of instruction leading to a degree, certificate, or diploma at a secondary or post-secondary educational institution, or who is completing residence requirements for a degree. A person shall be deemed to be a student during the time that school is not in session if the person was a student during the preceding semester."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

Report Title:

Unpaid Internships; Students; Guidelines

Description:

Establishes clear guidelines for unpaid internships under the state wage and hour law. (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.