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Tentative settlement in Elite Model intern case

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in Compensation and Benefits,Human Resources

Following on the heels of several highly publicized lawsuits filed by unpaid or underpaid interns, Elite Model Management has tentatively agreed to a settlement with a class of interns who claim the agency either didn’t pay them or paid them less than the minimum wage.

Elite, with offices in Manhattan and other cities worldwide, discovered such supermodels as Cindy Craw­­ford, Gisele Bündchen, Steph­­anie Seymour and Alessandra Ambrosio.

A federal judge must still sign off on the $450,000 settlement.

The agreement hinges on a formula that calculates lost pay based on the number of weeks each person worked as an intern for the company. One-third of the settlement money will go to the interns’ attorneys, $20,000 will be set aside for those who signed on to the suit before the settlement was announced, while the remainder funds an account for in­­terns who have yet to come forward.

Elite could still face individual lawsuits from those who didn’t join the class action.

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