Internship Agreement Red Flags: Protect Your Rights

Internship agreements may seem informal, but they are binding contracts that can affect your rights, your work, and even your future career. Interns, particularly those early in their careers, may not realize what they are agreeing to.

Key Red Flags

• Broad IP assignment: Some internship agreements assign all intellectual property you create during the internship, including personal projects done on your own time. This is particularly problematic for tech, design, and creative internships. Look for a carve-out for work done outside of business hours using personal resources.
• Non-compete clauses: An internship with a non-compete can restrict your ability to work in your field after the internship ends. For unpaid or low-paid internships, non-competes are especially questionable and may be unenforceable in many states.
• Unpaid internship misclassification: Under the Department of Labor's "primary beneficiary" test, unpaid internships at for-profit companies must primarily benefit the intern. If the agreement describes duties that primarily benefit the employer (productive work with minimal training), the arrangement may violate wage and hour laws.
• No defined scope of work: An agreement with vague duties like "assist with various projects" gives the employer unlimited discretion. This can lead to performing work outside what you expected, with no recourse.
• Excessive confidentiality terms: While some confidentiality is reasonable, agreements that restrict you from discussing your internship experience, your compensation (or lack thereof), or workplace conditions may be overbroad.

Other Concerns

• No stipend or reimbursement for expenses: If you are expected to cover your own travel, equipment, or software costs, those terms should be explicit upfront.
• Automatic conversion clauses: Some agreements state that accepting a full-time offer automatically triggers restrictive covenants. Understand what you are agreeing to beyond the internship itself.
• No termination rights for the intern: You should be able to leave the internship with reasonable notice. Agreements that penalize early departure (e.g., requiring repayment of training costs) deserve scrutiny.

When to Consult a Lawyer

If an internship agreement includes broad IP assignment, a non-compete, or terms that seem unusually restrictive for an intern position, consider having an employment attorney review it. Many legal aid organizations and law school clinics offer free reviews for students.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.