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Many employers hire unpaid interns thinking it is a win-win situation; the intern learns the ropes of the industry and the employer receives free help. There are however very specific criteria which must be met for employers not to be required to pay their interns. On June 11, 2013, in Glatt v. Fox Searchlight, a federal district court judge in New York ruled that unpaid interns working for Fox Searchlight should have been paid for their work under the federal Fair Labor Standards Act.
Judge William H. Pauley III outlined six factors which all must be met in order for employers not to be required to pay their interns:
In New York, eleven factors must be met as described by a Fact Sheet issued by the New York State Department of Labor.
We at Jules Halpern Associates have extensive experience drafting and updating employee handbooks, preparing confidentiality policies, independent contractor agreements, auditing employee classifications, and advising on internship issues. If we can be of assistance in any of these areas, please contact us for further information.