Navigating California’s Unpaid Internship Laws: What Fashion Startups Need to Know
As e-commerce continues to grow, the desire of young entrepreneurs to make their start in the industry has seen an increase as well. The industry of e-commerce requires a wide range of skills from its employees, and it is common for young people who are both ambitious and fashion-conscious to seek a position with an e-commerce fashion platform like Bancstac. But what is the legality of such early positions? If a young person takes a paid position, they may not have the flexibility to balance the startup from their education, while if they want to take an internship position, that may require them to accept little to no compensation. As a startup in the e-commerce fashion industry, how can you ethically and legally take on unpaid interns?
We previously discussed what California’s guidelines require for internships in general: to be considered legal under California law, an unpaid internship has several criteria that must be met. These requirements are established by the DLSE, Wage Order No. 4, and Fed. Dept. of Labor’s Fact Sheet #71. After meeting the internship guidelines, e-commerce fashion startups in California should ensure that they have carefully considered how their interns can get the most value out of their experience. Too often, founders prioritize the startup’s needs over that of the interns’. However, as stated in Wage Order No. 4: The unpaid intern or student shall not displace a paid employee but must work under close supervision of existing staff. While it is not necessary to have a substantive contract in place, having some type of framework for the position can be beneficial for both the employer and the intern. These should include, but not be limited to: By setting clear expectations before the internship has begun, an employer can better manage their time. Furthermore, those who have studied the language of internship specifically to the fashion industry have concluded that the guidelines sometimes leave gaps. Thus, a prospective intern should think very critically about whether or where to seek an internship with an e-commerce fashion startup. While a startup can benefit from an intern, it is still necessary that an intern can show that they are getting additional value from the experience outside of the experience.
However, it cannot be denied that many young people do choose to pursue internships with fashion e-commerce startups without any substantial expectation of what they will learn. Thus, it is recommended that while you are trying to establish your knowledge base for the position they are seeking, you also consider what your interns can tangibly gain from the experience. Additionally, an employer should always focus on being clear and succinct with their internship position descriptions, and always facilitate a conversation with the applicant prior to bringing them on as a legal intern. Finally, while not all fashion e-commerce startups have the capability to bring on unpaid interns, there should be a conversation about shifting costs of living and other considerations while the applicant is working.