2nd Circuit says interns don’t necessarily have to be paid — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

2nd Circuit says interns don’t necessarily have to be paid

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in Employment Law,Human Resources

by Jennifer B. Scheu, Esq., Bond Schoeneck & King, New York City

In two recent cases decided in July, the 2nd Circuit Court of Appeals has held that in many instances, unpaid interns may not necessarily be employees covered by the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL).

In both cases (Glatt v. Fox Searchlight Pictures and Wang v. The Hearst Corp.), plaintiffs who had obtained internships at major media companies argued that they were entitled to wage payments under the FLSA and NYLL. In addition, they sought to bring their claims as collective actions, which would drive up the costs of litigation and significantly increase the potential liability.

The 2nd Circuit adopted a standard that will likely make it more difficult for unpaid interns to establish employment status, and will likely make it more difficult for unpaid interns to litigate their FLSA and NYLL claims in class or collective actions.

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