What Is an Internship Agreement

An Internship Agreement is a short-form employment contract that outlines the terms, responsibilities, and learning goals for a temporary intern role—whether paid or unpaid. It helps set expectations on hours, supervision, tasks, and duration, while making clear whether the position qualifies as a true internship under labor laws.

For businesses, it’s a critical tool for reducing legal risk, especially when offering unpaid internships, which must meet strict compliance standards. For interns, it offers structure, clarity, and a more meaningful experience.

✅ Why it matters: A clear Internship Agreement protects your business from misclassification claims and ensures the intern gains real value from the role.

When to Use an Internship Agreement

• • You’re hiring a student intern or recent grad
  • You want to define tasks, learning goals, and duration
  • You’re not offering traditional wages or benefits
  • You want to protect any IP the intern creates
  • You need to comply with labor laws like the Fair Labor Standards Act (FLSA):
    
    • 💡 The FLSA sets rules for minimum wage, overtime, and intern classification. Unpaid internships must meet specific criteria under this law to avoid penalties.

Key Clauses to Include in an Internship Agreement

✅ Internship Scope & Responsibilities
Outline what the intern will be doing day-to-day, including any projects, tasks, or learning goals. This keeps the experience structured and prevents misunderstandings about their role.

✅ Duration and Schedule
Set clear start and end dates, along with expected hours per week. A defined timeline helps with planning and ensures compliance with labor laws, especially for unpaid internships.

✅ Compensation or Academic Credit
State whether the internship is paid, unpaid, or for school credit. If unpaid, be sure it meets FLSA criteria to avoid misclassification issues.

✅ Compensation or Academic Credit
State whether the internship is paid, unpaid, or for school credit. If unpaid, ensure it meets FLSA requirements — including that interns receive educational benefits, do not displace regular employees, and work under the supervision of existing staff. This protects your business from wage claims and compliance issues.

✅ Supervision & Evaluation
List who will oversee the intern’s work and how feedback or performance reviews will be handled. This ensures the intern receives mentorship and meaningful guidance.

✅ Confidentiality & IP Ownership
Make it clear that any work created or confidential information shared belongs to the company—critical for protecting your business and data.

✅ Non-Employment Disclaimer
Clarify that the intern is not a full-time employee and is not entitled to employee benefits. This helps protect your company from future claims related to wages, benefits, or wrongful termination.

Mistakes This Agreement Helps Prevent

⚠️ Unclear Terms for Unpaid Internships
If unpaid internships don’t meet FLSA standards, your company could face wage claims or legal penalties. Clear, compliant terms are essential to avoid misclassification.

⚠️ Interns Misusing Company Materials
Without confidentiality rules or usage guidelines, interns may unintentionally share or misuse internal assets, client data, or trade secrets—putting your business at risk.

⚠️ Ownership Disputes on Creative Output
If your agreement doesn’t address IP ownership, interns may claim rights to designs, copy, or code they helped create. A simple clause prevents legal headaches later.

⚠️ Interns Expecting Long-Term Employment
If you don’t clarify the temporary nature of the role, interns may assume they’re on track for a job offer—and feel misled when one doesn’t come. A non-employment disclaimer sets the record straight.

⚠️ No Supervision or Feedback Process
An unsupervised intern isn’t just unproductive—it could lead to liability if something goes wrong. Interns need oversight and structured feedback to succeed and add value.