On June 11, 2013, Judge William H. Pauley of the U.S. District Court for the Southern District of New York issued a decision in Glatt v. Fox Searchlight Pictures, which scared employers with unpaid internship programs in New York City. The court ruled that an employer violated federal and state labor laws by classifying the plaintiffs as unpaid interns rather than employees, and that the plaintiffs should have been paid for their work. These are rigorous tests, and in most cases, New York companies that hire interns are likely to employ employees who are eligible for minimum wage and overtime pay. For companies that operate truly legitimate unpaid internship programs, these companies should consider signing unpaid internship agreements to document the scope of their program. In the event of a challenge, such agreements can be convincing evidence of how the internship programme has worked in practice. Some employers find that the quality of a paid intern`s talent outweighs the profitability of an unpaid intern. This was the case with The Hire Talent, a company that provides recruiters with a pre-employment assessment when analyzing their own recruitment methods. Hire Talent currently pays interns $15 per hour. There are many places where you can look for new employees.
In general, internships will appeal to young people who are still training in the field of their choice. This means colleges and business schools are great places to start your search. Both can host job fairs – virtually or in person. We know how disappointing it can be when a company offers you a meaningful internship and you instead grab a coffee and take care of a menial job. You don`t have to suffer in silence. If you`re one of the many New Yorkers who worked as an unpaid intern in New York City, you might be eligible for financial compensation. Contact experienced New York lawyers for unpaid internships at Lipsky Lowe LLP to set up your free job advice today. On the second circuit, which includes Connecticut, New York and Vermont, employers must pass the « principal beneficiary test » to determine whether or not an intern can be paid under the federal Fair Labor Standards Act. The test is nuanced and takes into account the fact that the intern or employer is the main beneficiary of the relationship.
« I only need five hours a week, so it`s not paid, » Porter said. « All of them were good with our arrangement and I think had a great time and learned a lot. As a one-person business, it`s also good to sometimes get the opinions and ideas of others. « If you`ve been a student or graduate student, you`ve probably worked as an intern before. If you`ve completed an internship in New York`s thriving financial industry, such as for a media company or law firm, you know how much companies expect interns to work. Maybe your employer promised you that you would receive hands-on work experience and a letter of recommendation in exchange for your hard work as an intern. Many people don`t know that an unpaid internship is illegal. Until the Glatt decision, the Second Circuit had not dealt with the « trainee » exemption from the RSA. Glatt, 2013 U.S.
Dist. LEXIS 82079, at *32. While the defendants argued that the factors set out by the Ministry of Labour (« DOL ») were not the applicable standard and asked the court to apply the « primary performance test », which considers whether the benefit of the internship for the intern outweighs the benefits to the contracted company, the court held that the beneficiary test is too subjective and unpredictable. Id. Instead, the court relied on the LOOL criteria to determine whether an internship may not be remunerated: (1) The internship, while covering the actual operation of the employer`s facilities, is similar to the training that would take place in an educational setting; (2) the training period benefits the trainee; (3) the trainee does not replace the permanent staff, but works under the strict supervision of the existing staff; (4) the employer providing the training does not derive any direct benefit from the trainee`s activities; and sometimes its functioning may actually be impeded; (5) the trainee is not necessarily entitled to employment at the end of the training period; and (6) the employer and the intern understand that the intern is not entitled to pay for the time spent in the internship. Id. at p. 30. If a company has hired these students under the pretext of providing professional and educational services and they are not doing so, you may be able to take legal action. If a company hired you as an intern and paid you below minimum wage, you may have a legal claim against them. This is especially true if your employer expects you to meet the quotas that permanent employees must meet. The payroll and scheduling lawyer at Lipsky Lowe LLP is very familiar with New York labor law.
We have seen the negative effects that illegal unpaid internships have on our clients. Our lawyers will help you fight the exploitation of unpaid workers. If you have worked in an illegal unpaid internship, we will use our experience of more than 30 years to aggressively fight for your interests inside and outside the courtroom. We will use our in-depth knowledge of the labor laws of New York State, New York and New Jersey to fight for the desired outcome. In Glatt et al., v. Fox Searchlight Pictures, Inc., No. 11 Civ. 6784, 2013 U.S. Dist.
LEXIS 82079 at *1 (S.D.N.Y. On June 11, 2013, the plaintiffs argued that they had been wrongly classified as unpaid interns instead of paid employees, which violated the New York Labor Code (« NYLL ») and the Federal Fair Labor Standards Act (« FLSA ») and should have been entitled to a salary. The plaintiffs worked on the production set of the film Black Swan as assistants, accountants, secretaries and janitors. The Court found that the internships at issue in the case, which are typical of many unpaid internships in journalism, media, fashion and film production, did not meet the TRAINEE standard under the RSA and NYLL. The interns received no training and performed positions in the Fox Searchlight Pictures office and on its sets, which mainly benefited Fox Searchlight. The work performed by the interns was also of the type that would have been done by paid staff in the absence of the interns, and the work gave Fox Searchlight an immediate benefit. As a result, the plaintiffs were entitled to at least minimum wage and overtime pay for their work for Fox Searchlight. The decision has already had an impact on the many industries in New York that rely heavily on unpaid interns. Pauley J. argued that while Glatt and Footman received benefits from their internships, such as an understanding of how a production office works, job references, and a resume booster, these benefits « are not the result of internships that are intentionally structured to benefit them » and are only « random » because « resume lists and job references result from any employment relationship, paid or unpaid and are not the achievements of academic or professional training. » Id. at 37. The court further noted that « even under the defendant`s preferred test [the primary beneficiary test], the defendants were the `primary beneficiaries` of the relationship, not Glatt and Footman. » Id.
at age 34. Therefore, having regard to all the circumstances, since they `worked as paid employees, gave their employer a direct advantage and performed tasks at a low level which did not require special training`. [and] not from internships designed to be particularly informative for interns and of little use to the employer. Id. at 40-1. They received nothing equivalent to the training they would receive in a university or vocational school » and were not except « trainees ». This also applies to international students without permission to work in the United States. Although these students are only allowed to do unpaid internships, they still have to pass the principal beneficiary test – the inability to accept compensation is not a legal loophole. If the Ministry of Labour determines that the internship violates the FLSA, that intern would be violating their immigration status. In such cases, the employer is not the only one to be punished; The trainee may be threatened with expulsion.
In short, unpaid internships create a vicious circle: they reward students who are already economically advantaged, while increasing competition for everyone else. According to DOL, internships in for-profit companies must meet the following six requirements to exempt the internship from the requirements of the Fair Labour Standards Act (FSL). If the internship meets all six requirements, there is no employment relationship UNDER the FAA and the minimum wage and overtime provisions of the law do not apply: Neither Signify nor CBD`R US provide academic or professional credit through their internships. For students who are willing to pay all the costs to start their careers, this is a no-brainer. For them, internship does not mean selling their work for zero pay; He buys work experience for the price of their work. Despite the Fair Labour Standards Act, this can be legal. This is the value of a well-padded CV. It`s hard to see the damage done during an unpaid internship – they can eventually leave. However, according to the Economic Policy Institute, unpaid internships can be a major drawback of social mobility. The report shows that the unpaid intern is not the only stakeholder; Also affected are students who cannot afford to work for free. For these students, the price of an unpaid internship is not only time, but also the opportunity cost of the salaries they could earn in another part-time or full-time role.
