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
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
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.