Should this bill be enacted, it would amend Chapter 388 of the Hawaii Revised Statutes, which governs wages and hours. The new regulations would specifically limit unpaid internships, prohibiting them unless they adhere to the defined educational criteria. This means that companies can no longer classify their unpaid positions arbitrarily; instead, they must demonstrate that the primary purpose of the internship is educational and not for the immediate gain of the business. This legislative move is aimed at upholding minimum wage requirements and ensuring fair labor practices.
House Bill 1196 introduces stringent regulations regarding unpaid internships in the State of Hawaii. The bill aims to establish clear guidelines under the Fair Wages Act, ensuring that unpaid internships truly provide educational benefits rather than serve as a means for companies to exploit student labor. The legislation recognizes the growing concern regarding the nature of unpaid internships, particularly in for-profit sectors, and sets out specific criteria that must be fulfilled for internships to be classified as educational, protecting both students and employers from potential misinterpretations of labor laws.
However, the bill is not without its controversies, particularly among businesses that might rely on unpaid internships for administrative or operational support. Advocates argue it will help protect vulnerable students from being taken advantage of, while critics worry that tightening the laws surrounding unpaid internships may dissuade companies from offering internship opportunities altogether. The bill seeks to strike a balance between requiring fair labor practices and providing students access to valuable experiential learning opportunities.