SB41

THE SENATE	S.B. NO.	41
THIRTY-SECOND LEGISLATURE, 2023
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 in 2018, the United States Department of Labor put forth additional guidelines to ensure individuals are not being taken advantage of by for‑profit companies under the guise of offering unpaid internships. However, these guidelines have not yet been codified in the United States Code, 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 program criteria for unpaid student internships in the state.

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

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

(1) The training shall be similar to training provided in an educational program;

(2) The training shall be for the benefit of the student;

(3) The student shall work under close supervision and shall not displace regular employees;

(4) The student shall not be entitled to a paid job at the conclusion of the internship period and may take a job elsewhere in the same field;

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

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

(7) The student shall not receive employee benefits;

(8) The training shall be 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 internship program;

(9) The screening process for the internship program shall:

(A) Not be the same as for employment and shall not have the appearance of being for that purpose; and

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

(10) Advertisements, postings, or solicitations for the internship program shall clearly discuss education or training rather than employment; provided that 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.

INTRODUCED BY:	_____________________________