Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Madison Square Garden Lawsuit May Have Far-Reaching Implications For Sports Industry
Author: Scarinci Hollenbeck, LLC
Date: September 25, 2013
Key Contacts
Back
Several entertainment companies have been hit with lawsuits lately from unpaid interns alleging labor law violations, but a new Madison Square Garden lawsuit may have far-reaching implications for the sports industry as a whole.
The class-action suit filed by more than 500 former interns claim that they were misclassified as interns to avoid being compensated adequately, despite performing work responsibilities that would otherwise classify them as employees. Typically, the line between intern and employee status rests upon the specific roles and responsibilities that workers carry. An intern charged with running errands and providing coffee at board meetings may have fewer claims against a company than one tasked with projects that could have a considerable financial impact on the business.
In the Madison Square Garden case, interns worked five days a week and performed tasks relating to administrative projects, logistics during sporting and entertainment events, and sponsorship sales.
While the initial issues in the case surround labor and business law, the outcome of the lawsuit could have a financial impact on both sports agencies, as well as those trying to break into the industry. A recent Forbes article noted that in some ways, the unpaid intern scenario mirrors the arguments being discussed about unpaid college athletes. As sports commentators have argued that the experience, training, and career opportunities that stem directly from participating in college athletics justifies compensation bans, other analysts agree that the mentorship, guidance and business experience interns secure when working for large sports companies is unparalleled. In many cases, these interns are given full-time positions following their internships.
As the sports and entertainment industry is highly competitive, a verdict in favor of the plaintiffs may create a backlash among companies that frequently employ interns, which could lock many people out of entering the industry altogether.
- 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
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
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.