NEW YORK — A group of interns who worked for Sirius XM Radio Inc. settled a wage suit with the company for $1.3 million. The initial named plaintiff, Melissa Tierney, was a former intern on the Howard Stern Show in 2011 and sought compensation for herself and others who worked as unpaid interns. She brought the suit in 2014, alleging that Sirius violated the Fair Labor Standards Act (FLSA) by failing to compensate them. After around $300,000 in attorney’s fees and administrative expenses are deducted, the 1,852 class members will receive the net amount of the settlement.
Allegations of Sirius Interns
The interns claimed that that Sirius XM violated labor laws by not paying them. The interns claimed that they deserved payment because they performed work necessary to the company’s operations and received no academic or vocational training or pay. The representative plaintiff alleged that she spent four months “running errands, placing orders, obtaining breakfast orders,” and performing other menial tasks for Howard Stern’s staff without compensation. Another intern, Justin Vietta, who later became the named plaintiff on behalf of the class, stated that he paid his college $500 a semester to work at Sirius XM and was essentially paying to work for free. Other tasks that interns performed allegedly included making phone calls, booking guests, and keeping guests entertained when they came in for shows. According to Vietta, Sirius asserted that its unpaid internship program was completely lawful and fully complied with all wage and hour laws.
Internship Programs Under the Fair Labor Standards Act
FLSA requires that non-exempt individuals who are “suffered or permitted” to work must be compensated for the services they perform for an employer. Internships in the “for-profit” private sector will most often be viewed as employment, unless the test described below relating to trainees is met:
- The internship, even though it includes actual operation of the facilities of the employer, is similar to training that would be given in an educational environment;
- The internship experience is for the benefit of the intern;
- The intern does not displace regular employees, but works under close supervision of existing staff;
- The employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded;
- The intern is not necessarily entitled to a job at the conclusion of the internship; and
- The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
If all of the factors listed above are met, an employment relationship does not exist under the FLSA, and its minimum wage and overtime provisions do not apply to the intern. This exclusion is necessarily narrow because FLSA’s definition of “employ” is broad.
Unpaid internships can become excuses for employers to deny employees wages when the internship is, in fact, an employment relationship that benefits the employer. If you or someone you know is wrongfully classified as an unpaid intern, you should call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our top-rated team of wage lawyers will evaluate your situation to determine your best course of action. We will also determine if it is in your best interest to file a lawsuit against your employer. There are strict time limitations for filing, so it is important that you call our experienced attorneys today.