We’ve warned clients for some time now that businesses and
other organizations should think carefully if they are considering
the possibility of permitting unpaid internships. What might
be described as the internship “season” is
fast-approaching, so the time to consider whether and under what
circumstances to get involved in these relationships is now.
The Current Landscape
The latest big-splash lawsuit surfaced recently. A former
unpaid intern filed a collective-action/class-action complaint for
“at least $50 million” against Elite Model Management
Corporation under the federal Fair Labor Standards Act (FLSA) and
similar New York state laws.
This comes in the wake of an agreement by Charlie Rose and his
show’s production company to pay around $250,000 to settle an
internship-related lawsuit brought last March. A developing
cottage-industry among lawyers is now on the lookout for
opportunities to assert claims on behalf of unpaid interns,
“even if [the