California employers—particularly nonprofits, arts organizations, and mission-driven institutions—frequently ask whether they can lawfully use volunteers or unpaid interns. Students want experience. Community members want to contribute. Organizations want to expand their impact.
Yet fear of wage-and-hour liability often leads employers to adopt a blanket rule: we don’t do unpaid internships or volunteers. In reality, California law does permit certain unpaid arrangements—but only when they are properly structured.
A recent California Court of Appeal decision, Spilman v. The Salvation Army (2026), underscores both the risks and the framework courts use to determine whether an individual is truly a volunteer—or an employee entitled to wages.
The key takeaway is not “never use volunteers.” The key takeaway is that structure matters.
The Legal Framework: Volunteers vs. Employees
Under California law, volunteer status is permitted only in limited contexts, primarily involving:
- Nonprofit organizations
- Charitable, religious, or public-service purposes
In Spilman, the court clarified that when a nonprofit claims an individual is a volunteer, it must satisfy two requirements.
Prong One: Genuine Voluntary Service
The individual must freely agree to provide services:
- For personal fulfillment, charitable, religious, or educational reasons
- Without expectation of compensation or future wages
If there is an understanding—express or implied—that payment will eventually occur, volunteer status may fail.
Prong Two: No Subterfuge to Evade Wage Laws
The organization must also show that the volunteer arrangement is not a disguised employment relationship. Specifically, volunteer labor cannot:
- Replace paid employees
- Perform core operational functions the organization would otherwise pay staff to perform
- Serve as a workaround for staffing shortages
If either prong is not satisfied, California wage-and-hour laws apply—regardless of how the organization labels the relationship.
Courts look beyond titles. The question is not what the arrangement is called, but what the individual is actually doing.
Unpaid Internships: A Related but Distinct Analysis
Unpaid internships are evaluated under a different framework—commonly referred to as the “primary beneficiary” test.
Under this analysis, courts examine who primarily benefits from the relationship: the organization or the intern.
Key considerations include:
- Is the intern the primary beneficiary of the experience?
- Is the role educational or training-oriented?
- Is the work tied to academic, vocational, or artistic development?
- Does the intern displace paid employees?
- Is there a clear understanding that no wages will be paid?
Not all unpaid internships are unlawful. However, they must be intentionally designed to provide genuine educational value rather than productive labor that benefits the organization.
Where Organizations Get Into Trouble
Wage-and-hour liability most often arises when organizations drift from educational or charitable intent into operational dependence.
Common risk points include:
- Using volunteers to fill staffing gaps
- Assigning routine, revenue-generating, or core operational tasks
- Failing to document the purpose and scope of the role
- Imposing rigid schedules, productivity quotas, or discipline structures typical of employment
- Labeling a position a “volunteer internship” without changing the substance of the work
When volunteers begin functioning like employees, courts are likely to treat them as such.
How to Structure Volunteer and Intern Programs Properly
Organizations that successfully use volunteers or unpaid interns typically take a thoughtful, structured approach. Best practices include:
- Clearly defining the role’s purpose and limitations
- Designing work to supplement—not replace—paid staff
- Emphasizing mentorship, observation, and skill development
- Allowing scheduling flexibility
- Using written acknowledgments confirming no expectation of compensation
- Aligning the role with the organization’s charitable or educational mission
For example, in arts organizations, shadowing, research assistance, model-building, creative collaboration, or design support may be appropriate. Running box office operations or performing stage labor that would otherwise require paid staff likely is not.
The distinction is subtle—but legally significant.
Practical Bottom Line
Volunteer and unpaid internship arrangements are not prohibited under California law, but they are closely scrutinized. Courts will evaluate the reality of the relationship—not the label.
Organizations that design these programs with intentionality, transparency, and respect for wage-and-hour principles can continue to provide meaningful opportunities without unnecessary legal exposure.
When in doubt, careful review of the role’s structure before implementation can prevent costly wage claims later.