A Melbourne coffee franchise has been suspended from the government's flagship youth internship program after BuzzFeed News revealed two workers were chasing unpaid wages.

"The department has looked into this case and has determined it was a clear violation and has now suspended this employer from the program," a Department of Employment spokesperson told BuzzFeed News.

"The department urges all young people to notify their employment service provider or the department directly and immediately if they are unsure about their internship agreement."