What This Form Does

This Internship Agreement establishes the relationship between a startup and an intern, whether the arrangement is paid or unpaid. It defines the internship term, scope of duties, supervision structure, learning objectives, compensation (if any), and the parties’ respective obligations — including critical IP assignment and confidentiality provisions that protect the company’s intellectual property.

The agreement also addresses conversion-to-hire mechanics, providing a framework for transitioning successful interns to full-time employment while preserving at-will status and avoiding implied-contract claims.

Why Startups Need This

Internship programs are one of the highest-risk areas of employment law for startups. The DOL’s “primary beneficiary” test — adopted by most federal circuits — evaluates seven factors to determine whether an unpaid intern is actually an employee entitled to minimum wage and overtime. Startups that fail this test face back-pay liability, liquidated damages, and potential class-action claims from entire intern cohorts.

Even paid internships require careful documentation. Without a written agreement, startups risk disputes over IP ownership (did the intern’s hackathon project belong to the company?), confidentiality breaches (the intern shares proprietary information at their university), and misclassification claims (was the intern really a short-term employee entitled to benefits?).

Key Provisions

Internship Classification. Clearly designates the arrangement as paid or unpaid and, for unpaid internships, documents compliance with the DOL primary-beneficiary factors: educational benefit, academic-program integration, defined duration, no displacement of regular employees, and mutual understanding that the intern is not entitled to wages or a job at the conclusion.

Term & Schedule. Defines the internship period, weekly hours, and scheduling flexibility. For unpaid interns, includes hour caps that support the educational-benefit argument. For paid interns, addresses overtime eligibility and timekeeping requirements.

Learning Objectives & Supervision. Establishes structured learning goals, assigned mentors, regular feedback sessions, and evaluation criteria. This documentation is critical for defending unpaid internship classifications and demonstrates the company’s investment in the intern’s professional development.

Scope of Duties. Defines permissible tasks and explicitly excludes productive work that primarily benefits the company (for unpaid arrangements). Includes guardrails preventing interns from performing work that would otherwise be done by paid employees.

IP Assignment & Work Product. Assigns all intellectual property created during the internship to the company, with carve-outs for pre-existing IP and academic work product. Includes invention-disclosure obligations and cooperation provisions for patent and copyright filings.

Confidentiality. Imposes confidentiality obligations tailored to the intern context — shorter duration than employee NDAs, recognition that interns may discuss general skills learned in academic settings, and clear identification of what constitutes confidential information.

Conversion to Employment. Provides an optional conversion framework with defined evaluation criteria, offer-letter mechanics, and provisions ensuring that the internship itself does not create an implied contract of future employment.

2025–2026 Emerging Provisions

Remote Internship Framework. Addresses fully remote and hybrid internship arrangements, including virtual mentorship requirements, remote-supervision protocols, and home-office expense considerations that have become standard since the shift to distributed work.

AI Tool Usage Policy. Establishes guidelines for intern use of generative AI tools, including disclosure requirements for AI-assisted work product, restrictions on inputting confidential information into AI platforms, and IP-ownership implications of AI-generated content.

Pay Transparency Compliance. Addresses emerging state requirements to disclose compensation ranges in internship postings and the interaction between unpaid internship structures and pay-transparency mandates.

Academic Credit Coordination. Includes provisions for coordinating with the intern’s educational institution, satisfying academic-program requirements, and documenting the educational component for DOL compliance purposes.

How to Use This Template

Download the .docx file and complete all bracketed fields. Start with the classification determination — if the internship is unpaid, work through the primary-beneficiary analysis with counsel before proceeding. For paid internships, confirm the compensation rate meets or exceeds applicable minimum wage (including local rates, which may be higher than federal or state minimums).

Execute the agreement before the internship begins. Assign a specific supervisor/mentor and document the learning objectives that will be reviewed at regular intervals. At the conclusion, conduct a formal exit process including return of equipment and materials, confirmation of confidentiality obligations, and (if applicable) the conversion-to-hire decision.

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This template is provided for informational and educational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in your jurisdiction before using any legal document. Montague Law provides this resource as part of the largest free open-source startup legal template library.