Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Are Unpaid Internships Coming to an End?
Author: Scarinci Hollenbeck, LLC
Date: August 23, 2013
Key Contacts
Back
In what has raised more questions about the legality of unpaid internships, a lawsuit was recently filed against Sean “Diddy” Combs’ Bad Boy Entertainment company by a former unpaid intern demanding compensation for her work.
Former intern Rashida Salaam worked for the music label between January and May 2012, and included menial tasks of answering phones, making deliveries, decorating the office for parties, and grabbing coffee and lunch for workers as her responsibilities. She was also reportedly required to wrap holiday presents for Sean Combs’ children. However, in light of recent lawsuits that have sided with unpaid interns seeking compensation for their work, many analysts are wondering if we may be seeing the end of unpaid internships altogether.
A ruling in Manhattan’s Federal District Court in early June affirmed that in order for an internship to be considered a true internship – rather than employment – all duties must be “educational,” and companies are required to compensate interns if they benefit from the work, Time Magazine recently wrote. These parameters may pave the way for a slew of more class-action suits, a number of which have already been filed against companies such as Fox, Sony, Atlantic Records, and Warner Music.
If so, this may have significant implications for companies and students alike, particularly the latter, which often seek college credit for internships. Changes in the internship classification and laws may have large bearing on which types of jobs and roles college students can take on to receive credit in the future, depending on the extent to which existing wage and labor laws are altered. In addition, should awards be extended to unpaid interns, this may open up new financial and tax issues for student workers, such as whether any compensatory awards will also be subject to FICA and income taxes.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
How Can Trusts Be Used in Business Succession?
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.