If enacted, SB41 will amend Chapter 388 of the Hawaii Revised Statutes to strictly regulate unpaid internships. Under the proposed criteria, all unpaid internships will be deemed unlawful except those classified specifically as student internships. The new criteria stipulate that such internships must provide training similar to that of educational programs, benefit the student, and not displace regular employees. Furthermore, companies must provide written notification to students that they will not receive wages, ensuring transparency about the internship's nature.
Senate Bill 41, introduced in the thirty-second legislature of Hawaii, aims to establish clear criteria for internship programs classified as unpaid student internships. The legislature emphasizes the importance of upholding labor laws and minimum wage requirements in the state while addressing concerns raised regarding unpaid internships. The bill seeks to mitigate potential exploitation of students working under the guise of internships by for-profit companies, particularly noting the lack of codification of updated federal guidelines into state law.
The bill has been met with mixed reactions from various stakeholders. Supporters argue that it will protect students from potential exploitation and ensure that internships are used primarily for educational purposes, rather than as a means to obtain cheap labor for employers. Critics, however, may express concerns over the potential limitations imposed on internship opportunities, especially within certain industries that rely heavily on unpaid internships for training purposes. The balance between protecting students' rights and providing them with valuable workplace experiences forms a key point of contention in discussions surrounding the bill.