Wage and Hour Defense Blog

My colleagues have a new post on the Retail Labor and Employment Law blog that will help many of our readers at this time of year: "Summer's Coming! How to Handle Unpaid Internships," by Jeffrey M. Landes, Susan Gross Sholinsky, and Nancy L. Gunzenhauser.

By Amy Traub and Desiree Busching

On February 1, 2012, a former intern of the Hearst Corporations’ Harper’s Bazaar filed a class action lawsuit on behalf of herself and others similarly situated. The lawsuit alleges that the company violated the Fair Labor Standards Act (“FLSA”) and applicable state laws by failing to pay minimum wage and overtime to interns. The use of unpaid interns is a widespread practice, especially in the retail, publication, and real estate industries, as well as in Hollywood. In fact, in September 2011, a similar lawsuit was filed against Fox ...

In the current economic downturn, competition for desirable positions of employment is keen. Ambitious job seekers may approach an employer asking for an unpaid position to gain experience, skills and contacts. While such a relationship may prove mutually advantageous, employers should remember that the DOL recently emphasized the FLSA's compensation requirements apply to employees who are required or allowed to work. The terms "to suffer or permit to work" have been construed expansively in order to effectuate the broad remedial purposes of the Act.