This is what I learned from a half-day legal seminar in california aimed at startups:
In California, unless the work is for course credit at an established institution, an intern must be paid minimum wage. If not, the intern can do the work, and then file with the state, which will then do all the investigation. The intern doesnt need to get a laywer. They get the state's lawyers looking for a hefty fine, back taxes, and the opportunity to audit the hell out of someone. Start-ups are especially vulnerable to this because programmers who would normally be exempt probably aren't making enough and should be paid overtime. The state doesn't care what those programmers want. They want their back taxes.
In California, unless the work is for course credit at an established institution, an intern must be paid minimum wage. If not, the intern can do the work, and then file with the state, which will then do all the investigation. The intern doesnt need to get a laywer. They get the state's lawyers looking for a hefty fine, back taxes, and the opportunity to audit the hell out of someone. Start-ups are especially vulnerable to this because programmers who would normally be exempt probably aren't making enough and should be paid overtime. The state doesn't care what those programmers want. They want their back taxes.