Internship Agreement Red Flags: Six Clauses to Check Before You Sign
This page is general information, not legal advice.
An internship agreement can look like a formality: you get experience, a reference and maybe some pay, and the company gets help on real projects. But the document is usually written by the company, and interns rarely push back because they worry about losing the spot. This page covers six clauses that often move risk onto the intern. For each one you get an illustrative example, why it matters, and wording you can propose. Many internship terms can be negotiated, even if only a little. The rules on pay, classification and what an intern can be asked to give up vary a lot by jurisdiction.
The example clauses below are illustrative. They are not taken from any real company's agreement.
1. Vague duties and pay labeled "educational"
A typical clause might read: "The Internship is an educational opportunity. Intern will perform such tasks as Company may assign from time to time and acknowledges that no wages or other compensation are owed."
Why it works against you
"Such tasks as Company may assign" lets the company give you ordinary staff work while calling it training. Many places have rules on when an intern can go unpaid, and those rules often depend on who mainly benefits from the work, whether there is real training, and whether you're replacing paid staff. A clause where you "acknowledge" that nothing is owed may not change what the law says, but it can make you think you have no claim. Ask a qualified lawyer or your school's career office what applies where you are.
What to ask for instead
Sample wording to propose: "Intern's duties and learning goals are described in Schedule A, and Company will assign a named supervisor. Intern will be paid [rate] per hour for all hours worked, or, if the internship is unpaid, Company confirms it meets all legal requirements for unpaid internships in the place where Intern works."
2. An IP assignment that reaches your own work
A typical clause might read: "Intern assigns to Company all inventions, works and ideas conceived during the Internship Term, whether or not made using Company resources or during working hours."
Why it works against you
This can sweep in your school projects, side projects, thesis research and portfolio pieces, just because you made them during the same months. You may lose the right to show or reuse work you created on your own time. See IP assignment clauses explained.
What to ask for instead
Sample wording to propose: "This assignment covers only work Intern creates within the scope of assigned duties or using Company resources. It excludes coursework, academic research and the prior or personal projects listed in Schedule B. Intern may show non-confidential work in a portfolio with Company's approval, which will not be unreasonably withheld."
3. A non-compete or non-solicit for a short placement
A typical clause might read: "For twelve (12) months after the Internship ends, Intern shall not work for, intern with or provide services to any competitor of Company."
Why it works against you
A restriction like this can block your next internship or your first full-time job in the same field, all in return for a few weeks or months of work. Interns rarely have the kind of trade secrets or client relationships these clauses are meant to protect. Whether a non-compete can be enforced against an intern varies a lot by jurisdiction. See non-compete clauses explained.
What to ask for instead
Sample wording to propose: "Intern is not subject to any non-competition restriction. Intern's only post-internship obligation is to protect Company's confidential information as described in Section [X]."
4. Confidentiality so broad you can't talk about the internship
A typical clause might read: "Intern shall keep strictly confidential all information relating to Company, the Internship and Intern's activities, without limitation in time."
Why it works against you
If everything about the internship is secret forever, you may struggle to describe your work on a CV, in interviews, or in a report your school requires for credit. "Without limitation in time" also means the duty never ends, even for information that later becomes public. See NDA red flags.
What to ask for instead
Sample wording to propose: "Confidential information means non-public business information marked or reasonably understood as confidential. It does not include information that is or becomes public. Intern may describe their role, general duties and skills gained, and may share required reports with their school."
5. Termination at any time with nothing owed
A typical clause might read: "Company may end the Internship at any time, for any reason, without notice. Upon termination, Company has no further obligation to Intern."
Why it works against you
If your internship is tied to academic credit, a visa, housing or a relocation, losing it without warning can cost you far more than the pay. "No further obligation" may also wipe out promised pay for hours already worked, a stipend or a reference. The clause usually doesn't give you the same freedom to leave. See termination for convenience clauses explained.
What to ask for instead
Sample wording to propose: "Either party may end the Internship with [X] days' written notice. Company will pay for all hours worked and any stipend earned through the end date, and will confirm Intern's dates and role in writing to Intern's school on request."
6. Repaying training costs, equipment or damages
A typical clause might read: "If Intern leaves before the end of the Internship Term, Intern shall repay all training, travel and equipment costs incurred by Company, and Intern shall be liable for any loss or damage to Company property."
Why it works against you
You could owe money for leaving a placement early, even for a good reason like illness or a family emergency. Open-ended liability for "any loss or damage" can also put normal wear and tear or honest mistakes on you. Some places restrict charging workers for training or deducting costs from pay. See liquidated damages clauses explained.
What to ask for instead
Sample wording to propose: "Intern will not be required to repay training, travel or equipment costs. Intern is responsible only for loss or damage to Company property caused by Intern's intentional misconduct, and will return all equipment at the end of the Internship."
Also worth a look
Check for clauses that send disputes to private arbitration (see mandatory arbitration clauses explained), rules on hours and overtime, who pays for travel or housing, and whether a full-time offer is promised or just "possible." If the internship turns into a job offer, see offer letter red flags.
Scan your own agreement free
Every internship agreement is different, and one broad clause can follow you long after the placement ends. Upload your internship agreement to the ScanMyTerms employment contract review as a PDF, DOCX, TXT or MD file, or just photograph it. In about a minute you get a list of clauses that work against you, with the risk level, the exact wording, why it hurts and how to change it. The free preview needs no sign-up and shows the risk count and the first two findings. The full report is $5. ScanMyTerms does not use your documents to train AI models, and reports are deleted after 7 days.
This page is general information, not legal advice. Internship rules vary by jurisdiction, so for decisions about a specific agreement, talk to a qualified employment lawyer or your school's career or legal services office.
Sources
- All clause examples on this page are illustrative and written for this guide. They are not quoted from any real company's agreement.
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