In a recent case against Fox Searchlight Pictures, Inc., it was claimed that Fox Searchlight and Fox Entertainment Group had violated the FLSA and NYLL by failing to pay a number of interns as required by minimum wage and overtime provisions.
In 2013, the district court, using a version of the DOL’s six-factor test, concluded in favor for two of the plaintiffs, claiming that they had been improperly classified as unpaid interns rather than employees. In a recent appeal, the Second Circuit declined the DOL’s invitation to defer to the test laid out in the Intern Fact Sheet. Instead, the Court agreed with the defendants and have now outlined a primary beneficiary test that has two significant features, including focusing on what the intern receives in exchange for their work. Upon this decision, the Court laid out a set of non-exhaustive factors to be used in determining whether an unpaid intern is properly classified.
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