Intern Hourly Pay Minimum Wage Rules 2026
Try Our Free Calculators
Want to crunch the numbers yourself? Use these free tools:
- Overtime Exemptions FLSA 2026 Eligibility Checker — Overtime Exemptions FLSA 2026 Eligibility Checker
- Hourly to Salary Calculator — Hourly to Salary Calculator
- Part Time Salary Estimator — Part Time Salary Estimator
The Core Formula: The 7-Factor Intern Test
The Department of Labor uses a “primary beneficiary” test with seven factors to decide if an intern is an employee (paid) or a true trainee (can be unpaid). No single factor is decisive — it’s the whole picture.
Formula = If the employer is the primary beneficiary of the internship → it’s paid employment at minimum wage
The seven factors look at things like: who benefits more, whether you get practical training similar to a school setting, whether it’s tied to your coursework, whether you displace regular employees, and whether you’re promised a job at the end.
Step-by-Step: Testing Your Internship
Say you’re a marketing intern at a private startup, 30 hours a week, doing social media posts the company publishes.
- Who benefits more? The company gets free content.
- Is it like school? Not really — no structured curriculum.
- Is it tied to coursework? You’re not getting credit.
- Do you displace employees? Yes — you’re doing work a paid marketer would do.
- Promise of a job? Vaguely hinted.
- Practical training? Minimal supervision.
- Both understand it’s unpaid? Yes, but that alone doesn’t make it legal.
Verdict: this looks like paid employment. At the federal minimum wage of $7.25/hour (many states higher), 30 hours × 10 weeks = 300 hours × $7.25 = $2,175 you’re owed.
Check your exempt status with the FLSA overtime eligibility checker, since interns at for-profit employers are almost always non-exempt.
2026 Real Case: For-Profit Startup Intern
Devon interns at a tech startup in California, working 25 hours/week writing code that ships to production. The company calls it an unpaid “mentorship.”
| Factor | Outcome |
|---|---|
| Primary beneficiary | Employer (ships code) |
| School-like training | No formal structure |
| Tied to coursework | No academic credit |
| Displaces employees | Yes — code goes to production |
| Promise of job | Implied |
California’s minimum wage in 2026 is $16/hour (state floor). Devon is owed 25 hrs × 10 weeks × $16 = $4,000. A friend of mine in a similar spot filed a wage claim and got paid in full plus penalties.
Where do people mess this up? They assume “internships are always unpaid.” That was maybe true in 1995. Today, for-profit internships that look like real work have to be paid.
Minimum Wage by State (Selected)
The federal floor is $7.25/hour, but many states set higher rates that apply to interns too:
| State | 2026 Min Wage | Interns Covered? |
|---|---|---|
| California | $16.00/hr | Yes |
| New York | $15.50/hr (upstate) | Yes |
| Washington | $16.66/hr | Yes |
| Texas | $7.25/hr (federal) | Yes |
| Florida | $13.00/hr | Yes |
For interns working enough hours to hit overtime, the hourly salary calculator shows annualized earnings, and the part-time salary estimator handles reduced schedules. Our minimum wage and overtime compliance guide covers how the floor interacts with OT, and the overtime exempt vs non exempt article breaks down who’s covered.
Frequently Asked Questions
Are unpaid internships legal in 2026?
Only in limited cases. For private, for-profit employers, an unpaid internship must pass the Department of Labor’s seven-factor “primary beneficiary” test. If the employer is the main beneficiary of the intern’s work, the intern must be paid at least minimum wage.
Do interns get overtime pay?
Yes, if they’re classified as employees and work over 40 hours in a workweek. Most paid interns at for-profit employers are non-exempt and entitled to 1.5× pay for hours over 40. Unpaid legitimate trainees are not covered by overtime rules.
What’s the minimum wage for interns in 2026?
Interns are entitled to at least the federal minimum wage of $7.25/hour, or the higher state minimum wage where they work. States like California ($16/hr), Washington ($16.66/hr), and New York ($15.50/hr) set higher floors that apply to interns.
Can a nonprofit offer an unpaid internship?
Yes, more easily than a for-profit employer. Nonprofits, charities, and religious organizations have more latitude to use unpaid interns and volunteers, especially when the internship is educational and the intern is the primary beneficiary.
Bottom Line
Most for-profit internships in 2026 have to be paid at least minimum wage. Run your internship through the FLSA overtime eligibility checker to see if you’re owed wages — and overtime if you cross 40 hours.