Before proceeding, please review the  legal disclaimer.

Interns’ Rights in Texas: What Students and Employers Should Know

Internships are often promoted as valuable opportunities to gain experience, build networks, and launch careers. But many interns in Texas are unsure about their legal rights—especially when it comes to pay, workplace protections, and termination.

Are interns entitled to minimum wage?
Can unpaid internships be legal?
Do discrimination laws apply to interns?

The answers depend on several factors, including whether the intern is classified as an employee under federal and Texas law.

Let’s break it down.

Are Interns Considered Employees in Texas?

The key legal question is whether an intern qualifies as an “employee” under the Fair Labor Standards Act (FLSA), which governs minimum wage and overtime laws.

Texas follows federal wage law for most employment matters.

If an intern is legally considered an employee, they must be paid at least minimum wage and, in some cases, overtime.

If not, the internship may legally be unpaid—but only if it meets specific criteria.

When Can an Internship Be Unpaid?

Under federal guidelines, unpaid internships are allowed primarily in the for-profit private sector only if the internship benefits the intern more than the employer.

Courts use what is called the “primary beneficiary test.”

This test considers factors such as:

• Whether the internship provides educational training

• Whether it relates to the intern’s formal education program

• Whether academic credit is provided

• Whether the internship duration is limited to learning

• Whether the intern displaces regular employees

• Whether the employer derives immediate advantage from the intern’s work

If the employer is the primary beneficiary, the intern may need to be paid.

When Must Interns Be Paid?

An intern generally must be paid if:

• They perform productive work that benefits the company

• They replace or perform the duties of regular employees

• The company relies on their work to operate

• The internship resembles a regular job

Simply calling someone an “intern” does not eliminate wage obligations.

Minimum Wage and Overtime for Paid Interns

If an intern is classified as an employee:

• They must receive at least the federal minimum wage

• They may be entitled to overtime if they work more than 40 hours in a week (unless exempt)

Texas does not have a separate state minimum wage higher than the federal rate for most workers.

Do Anti-Discrimination Laws Apply to Interns?

Yes—if the intern qualifies as an employee.

Federal and Texas employment discrimination laws protect employees from discrimination based on:

• Race

• Color

• National origin

• Sex

• Pregnancy

• Religion

• Age

• Disability

Even unpaid interns may have certain protections depending on the circumstances and employer size.

Harassment in internship programs can still create legal liability.

Workplace Harassment and Interns

Interns are not required to tolerate:

• Sexual harassment

• Racial slurs

• Hostile work environments

• Retaliation for complaints

Companies can face liability if they fail to address harassment involving interns.

Are Interns Protected From Retaliation?

If an intern reports discrimination, wage violations, or harassment, retaliation may be unlawful.

Retaliation can include:

• Terminating the internship

• Refusing to provide academic credit

• Giving negative evaluations in response to complaints

• Blacklisting future employment opportunities

Legal protections may apply even if the internship is short-term.

Can Interns Be Fired at Any Time?

In Texas, most employment relationships are at-will, including internships.

This means interns can generally be terminated for any reason that is not illegal.

However, termination cannot be based on:

• Protected characteristics

• Retaliation

• Violation of wage laws

The label “intern” does not remove legal protections.

Common Misconceptions About Intern Rights

Many people believe:

• Unpaid internships are always legal

• Interns are not protected by employment laws

• Academic credit eliminates wage requirements

• Small companies do not have to follow wage laws

These assumptions are often incorrect.

What Interns Should Do If They Have Concerns

If you are an intern and believe your rights are being violated:

• Keep records of hours worked

• Save written communications

• Document job duties

• Review any internship agreement

• Pay attention to how your role compares to regular employees

Understanding whether you qualify as an employee is often the first step.

What Employers Should Consider

Employers in Texas should carefully evaluate:

• Whether interns are performing employee-level work

• Whether wage laws apply

• Whether training is educational or operational

• Whether discrimination and harassment policies include interns

Misclassification can lead to wage claims and legal liability.

Final Takeaway

Internships can be valuable learning opportunities—but they are not outside the law.

In Texas, interns may have rights under wage laws, anti-discrimination statutes, and workplace protections, depending on how the internship is structured.

Whether you are a student or an employer, understanding the legal framework behind internships helps prevent misunderstandings—and potential legal problems.