An employment contract between the student and the host organization may be the unintended consequence of a work-integrated learning (WIL) placement. The student, as an ‘inadvertent employee’ of the host organization, can expose the university to risk. A case study involving thirteen Australian university lawyers identifies the legal and reputational risks associated with paid and unpaid WIL placements, and how university lawyers manage these risks through WIL agreements, legal advice and the support of external agencies. In Australia, the key themes which emerge from university lawyer experiences, and the existing literature, are the vocational placement exemption under the Fair Work Act 2009 (Cth), and scholarship payments. The article concludes with a series of lessons for WIL practitioners in terms of managing the labor-related risks of WIL programs.