SB357 would amend Hawaii’s wage and hour law, Chapter 388, to create explicit state standards for unpaid student internships. The bill states that unpaid internships are generally prohibited, but allows an exception for internships that qualify as “student internships” and meet a detailed set of criteria. Those criteria require the internship to be educational in nature, primarily benefit the student, be closely supervised, avoid displacing regular employees, and include written notice that the student will not be paid and is not an employee for minimum wage purposes.
The bill also requires that the internship not be structured as a disguised job opportunity, that the student not be promised or required to accept paid employment afterward, that no employee benefits be provided, and that recruiting and advertising materials emphasize education or training rather than employment. It defines “student” broadly to include part-time students in secondary or post-secondary programs, as well as students completing degree residency requirements, and treats students as still eligible during school breaks if they were enrolled the prior semester.
Impact
If enacted, SB357 would add a new section to Chapter 388 of the Hawaii Revised Statutes and give employers, schools, and regulators a clearer legal framework for unpaid internships. It would narrow the circumstances under which an internship can be unpaid, potentially affecting for-profit employers, educational institutions, students, and labor enforcement agencies by making noncompliant internship programs subject to wage-law scrutiny. The measure is intended to align state law more closely with U.S. Department of Labor guidance on unpaid internships while codifying those standards in Hawaii law.
Sentiment
The bill appears to have a generally protective and pro-worker tone, reflecting legislative concern that unpaid internships can be used to avoid minimum wage obligations or exploit students. The available materials show no recorded opposition, vote history, or committee testimony, but the bill’s findings emphasize labor-law enforcement and preventing misuse of unpaid internships. Its referral to the Labor and Technology and Judiciary committees suggests it was being considered as a labor standards and legal compliance measure.
Contention
The main point of potential contention is the balance between protecting students from unpaid labor and preserving legitimate educational internship opportunities. Supporters are likely to favor the bill’s anti-exploitation safeguards and clearer standards, while employers or institutions that rely on unpaid internships may be concerned that the criteria are restrictive or increase compliance burdens. Another possible issue is the bill’s broad prohibition on unpaid internships except those meeting the student-intern criteria, which could limit flexibility for nonprofit, for-profit, and clinical training programs that do not fit neatly within the statutory definition.