Law schools: externships: compensation.

Assembly Member Fong's legislation addressing law school externship compensation responds to mounting student debt concerns in California's legal education system, where the median loan burden reaches $120,000 and program costs can exceed $175,000 at ABA-approved institutions. Beginning August 1, 2026, the measure would permit law students at American Bar Association-accredited and California-accredited schools to receive compensation from externship sites while earning academic credit for their work.

The bill maintains existing academic standards while creating new flexibility around compensation. Law schools must allow employers to offer payment but cannot require it, and sites retain full discretion over whether to compensate students. The legislation defines eligible compensation broadly, encompassing travel costs, stipends, wages, and other benefits. It applies to in-person, hybrid and remote externships both within and outside California, provided students remain in good academic standing.

Several provisions establish boundaries around the new compensation framework. The measure explicitly states that compensated externships do not create obligations for workers' compensation or similar benefits, nor do they bind either party to future employment. Law schools cannot charge additional fees beyond tuition for externship opportunities. The requirements apply as formal mandates to independent institutions but as requests to University of California schools, which must act through the UC Regents to implement changes.