Law schools: externships: compensation.

Assembly Member Fong's legislation addressing law school externship compensation responds to findings that California law students face average program costs of $175,000 at ABA-approved schools and $75,000 at California-accredited institutions, with 78% taking on median loan debt of $120,000. Beginning August 1, 2026, the measure requires law schools to allow students to receive compensation from externship sites while earning academic credit, though employers retain discretion over whether to offer payment.

The bill maintains existing academic requirements while expanding financial options for students completing mandatory experiential learning hours. Law schools must continue applying their established criteria for approving externship sites and awarding credit. Students must remain in good academic standing to receive compensation, which may include wages, stipends, or travel cost reimbursement. The provisions apply to in-person, hybrid and remote placements both in California and out-of-state.

For University of California law schools, the requirements function as requests to the Board of Regents rather than mandates, reflecting the system's constitutional autonomy. The measure also specifies that compensated externships do not create future employment obligations between students and placement sites, nor do they require employers to provide workers' compensation or similar benefits. Law schools may not seek reimbursement beyond tuition from students participating in externship programs.