The ‘Black Swan’ Intern Ruling Could Change Unpaid Internships Forever Rebecca Greenfield
June 12, 2013

The case of the unpaid American intern just got upended again, and maybe for good: Just a month after one judge  dismissed the class-action suit  filed by free New York City media interns at Hearst Magazines, another has now granted the Hollywood coffee-fetchers who worked on Black Swan  a precedent-setting win, ruling that the two production interns “worked as paid employees” and that Fox Searchlight should have to pay them as such.  It’s a pivotal decision, says the attorney for the two young men who worked on the Oscar-winning film: “This is the first time a judge has held that interns as we know them today are employees entitled to wages and protections,” the lawyer, Juno Turner, told The Atlantic Wire in a phone interview Wednesday.  

Indeed, it’s the first time a major U.S. court has ruled that zero dollars for legitimate work does not a legal unpaid internship make. “Considering the totality of the circumstances,” reads the ruling from federal judge William Pauley, the plaintiffs,  Eric Glatt and Alexander Footman, “were classified  improperly as unpaid interns and are ’employees’ covered by” the the  Fair Labor Standards Act (FLSA) as well as New York’s labor laws. The judge added: “They  worked as paid employees work, providing an immediate advantage to their employer and  performing low-level tasks not requiring specialized training.”

At a minimum, 20th Century Fox, which is seeking to reverse the decision, will have to pay out the minimum wages earned in that period by the duo. The judge also added “class  certification” to a group of Fox interns, and Turner, their attorney, told the Wire that the totality of the judgment “will have a much broader impact in terms of making corporations reexamine their internship programs.”

The new precedent clarifies how employers can meet  six criteria that the FLSA says make it okay to use young people as workers without pay. “If you’re going to not pay you’re interns, it’s a pretty high bar,” Turner said. The law states that unpaid internships must benefit the worker, not the employer, and should be a part of a formal training program, without replacing a paid employee’s job. The Black Swan “internship” much like a lot of unpaid intern situations violated all of those tenets, ruled Judge Pauley. …

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For anyone who has ever had an unpaid internship, the Black Swan situation sounds familiar, which makes this ruling even more encouraging. Indeed, many internships appear to be within the grounds of the very internship that a U.S. federal judge just found illegal, both setting a precedent for future disgruntled worker bees and also scaring potential intern abusers into paying their summer or short-term staffers some actual money.

Perhaps even more encouraging for shirked interns is the class-action status the judge bestowed on any unpaid interns who worked for Fox subsidiaries. When a judge denied Hearst a class, many declared the heroic case against unpaid errand-running all but over. “If it can’t be done by a class  action, then very few will sue, and very few lawyers will take the cases,” a lawyer told ABC News  at the time. This latest Hollywood development proves otherwise, argues Turner: “What this really does mean is interns can pursue these claims on the class basis,” she said.