NEW YORK — A group of interns employed by Warner Music has settled its class action wage suit against its employer for violations of the Fair Labor Standards Act (FLSA) and New York labor law. The settlement agreement will pay each intern in the class consisting of 4,500 individuals $750 dollars each academic semester during which they worked as an intern, with a maximum payout of $1,500. One of the representative plaintiffs will receive an enhanced award of $10,000. This settlement comes at the heels of the settlement of other intern class action wage suits against NBCUniversal and Viacom.
Internships Under FLSA
According to the Wage and Hour Division of the U.S. Department of Labor, which enforces FLSA, internships in the private sector will be viewed as employment covered by FLSA unless the following criteria is satisfied:
- The internship is similar to training which would be given in an educational environment.
- The internship experience is for the intern’s benefit.
- The intern works under close supervision of existing staff without displacing regular employees.
- The employer that provides the training that provides no immediate advantage from the activities of the intern.
- The intern is not necessarily entitled to a job at the conclusion of the internship.
- The employer and the intern understand that the intern is not entitled to wages for the internship.
If all of the factors above are met, then the relationship is not one of employment under FLSA and the act’s minimum wage and overtime provisions do not apply. However, exclusion from FLSA’s definition of employment is quite narrow because FLSA’s definition of “employ” is very broad.
Warner Music’s Internship Program
In the lawsuit against Warner Music, the plaintiffs alleged that they were misclassified as exempt under FLSA. According to the suit, Warner operated a centralized, nationwide internship program in which interns had to work at least 15 hours per week. They claimed that they received no academic credit for at least part of their internships and received little to no supervision. One of the interns alleged that he worked about 50 hours per week for several months but didn’t receive any compensation or academic credit.
The Wage and Hour Division provides some guidance with regard to the educational environment necessary for exempting interns from FLSA coverage. The more an internship program is structured around a classroom or academic experience as opposed to the employer’s actual operations, the more likely it will be viewed as an extension of the individual’s educational experience. This often occurs where the college exercises oversight over the internship program and provides educational credit.
If you or someone you know is a misclassified 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.