On Thursday, October 23, 2014, NBCUniversal agreed to pay $6.4 million to settle claims that it violated labor laws over its unpaid internship program.  NBCUniversal’s decision to settle is pivotal because it marks a huge step toward eliminating unpaid internship programs completely.

The lawsuit against NBCUniversal began when Monet Eliastam, the lead plaintiff of the lawsuit, interned at Saturday Night Live for 25 hours per week or more and did not receive compensation. She and other unpaid interns filed a class-action lawsuit and sued NBCUniversal. Elisastam claimed, according to the Hollywood Reporter, that NBCUniversal “misclassified its workers as unpaid interns and thus denied them benefits like a minimum wage salary, overtime pay, social security contributions, and unemployment insurance.”

The Hollywood Reporter further reports that a United States District Court will have to approve the settlement, but if it stands, $1.18 million of the total $6.4 million will go to plaintiffs’ attorneys, Elliastam will receive a $10,000 service payment, and five other plaintiffs will receive service payments of $5,000 and $2,000 rewards. The rest will go to NBCUniversal interns, and the average settlement payment to interns will be $505 for those who interned in New York since July 3, 2007, in California since February 4, 2010, and in other states since February 4, 2011.

Unpaid interns have filed cases against Fox, Sony, Warner Brothers, and Viacom, and companies like Conde Nast have also settled unpaid internship cases. Unpaid internship cases are thus becoming the norm, which it should be.

As a law student, I have had my fair share of unpaid internships. One summer, I worked 35-40 hours per week at an entertainment company and did not receive a dime. Instead, I received credit and had to take an externship class. On the surface, that may not seem terrible because I got to apply three more credits to my total needed to graduate. However, I had to pay a few thousand dollars to take the externship class because the minimum amount of credits that my loan would pay for was six, and my externship class was only three.

It doesn’t take much to realize how unfair that is. Not only did I give the company free labor, but I was out a few thousand dollars in order to get that free labor. Where is the logic in that? There is none.  The unpaid internship system is designed to take total advantage of students just so the student can put that company’s name on his or her resume. The school makes money, and the company gets free labor.

Even for students who take internships or externships during the school year and do not have the student loans issue that I did, no one wants to take a class in addition to interning.  Especially in law school, students are so busy that externship classes take a back seat to a student’s more substantive school work, internships, law journals, and/or moot court.

Moreover, the entertainment companies exist in, not surprisingly, the most expensive cities in the country. Students can’t live on unpaid internships — not when your average lunch in New York City, for example, is around $10 or more. It’s simply not feasible. Yes, you can argue that students can live on student loans, but that misses the point.  Students want to be compensated for their work and be valued as integral employees. It’s as simple as that.

Fortunately, companies are starting to pay interns because companies do not want to be victims, which has been echoed to me in several legal internship interviews.

Hopefully interns will finally begin to get paid for their work across the board, and students will not have to experience what I and millions of other students have.

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Joseph Perry (@jperry325) is a 3L at St. John’s University whose goal is to become a publishing and media law attorney. He has interned at William Morris Endeavor, Rodale, Inc., Columbia University Press, and is currently interning at Hachette Book Group and volunteering at the Media Law Resource Center, which has given him insight into the legal aspects of the publishing and media industries.

Featured image courtesy of [Knot via Flickr]

Joseph Perry

Joseph Perry is a graduate of St. John’s University School of Law whose goal is to become a publishing and media law attorney. He has interned at William Morris Endeavor, Rodale, Inc., Columbia University Press, and is currently interning at Hachette Book Group and volunteering at the Media Law Resource Center, which has given him insight into the legal aspects of the publishing and media industries. Contact Joe at staff@LawStreetMedia.com.

The post NBCUniversal Settles With Unpaid Interns for $6.4 Million appeared first on Law Street.

The world we live in today makes it hard for any twenty-something to find a decent-paying, full-time job. Although we may search and search, many of us retreat back to school, taking on more debt while seeking higher education.

Even so, we have all accepted unpaid internships with the hope that there is a sliver of a chance that we may be hired as a full-time employee. Despite working for free, we expect to be treated along the same lines as any other employee, entitled to certain rights such as lunch breaks, vacation days, and freedom from sexual harassment, right? WRONG!

David Yamada reported that a New York Federal District Court held that an unpaid intern could not bring a sexual harassment claim against her employer, Phoenix Satellite Television US, Inc., under NYC Human Rights Law. The complaint alleges that the plaintiff, Liuhuan Wang sustained injuries as a result of quid pro quo sexual harassment and sexual harassment in the form of a hostile work environment created by her supervisor Zhengzhu Liu.

As a 22-year-old student at Syracuse University, Ms. Lihuan claims that during her four weeks at Phoenix Satellite US, Mr. Liu had almost complete supervisory authority in the New York and D.C. bureaus. Ms. Lihuan’s complaint alleges that Mr. Liu had a history of sexual harassment throughout his employment with Phoenix Satellite and he would prey on female employees just starting their career in America and lure them to his hotel room where he would grope and kiss them, and attempt to have sex with them. He is accused of insinuating that in order to have a successful career, female employees and interns at Phoenix would have to submit to his unwanted sexual desires.

Ms. Lihuan claimed that Mr. Liu had similarly invited her back to his hotel after treating her and several co-workers to lunch when he was in town. After asking her to stay behind to “talk about her job performance,” Mr. Liu guided Ms. Lihuan back to his hotel room, under the guise of an work-related issue, and attempted to grope and kiss her, forcing Ms. Lihuan to push him back and leave the room immediately.

Her grievance is due to the fact that she believes her refusal of Mr. Liu’s sexual advances is the reason she was denied full-time employment. The complaint also mentions that a fellow Syracuse student, Qian Chen, worked for Phoenix and was also sexually propositioned by Mr. Liu. Perhaps Mr. Liu and the people over at Phoenix Satellite need a visit from this guy.

The U.S. District Court judge, Judge Kevin P. Castel, ruled that Ms. Lihuan could not bring a valid claim of sexual harassment under New York City Human Rights Law against her employer because her lack of compensation rendered her unable to meet the employee status required by the statute.

Using federal and NY case law, the district court determine that unpaid interns are not employees as defined under Title VII of the 1964 Civil Rights Act or NYC Human Rights Law. The district court stated that remuneration or the absence of remuneration is an essential element to determining the existence of “the employer-employee relationship.”

The U.S. Equal Employment Opportunity Commission (EEOC) supports the U.S. District Court’s position that sexual harassment laws don’t cover interns unless they receive “significant remuneration,” according to an EEOC spokesperson, Joseph Olivares.

According to Bloomberg Businessweek, Phoenix denies that Ms. Lihuan ever applied for a position and Mr. Liu is no longer with the company. This wasn’t the first case, and it surely will not be the last. Although the workplace dynamic for unpaid interns is already changing, maybe it’s time to take another look at the rights unpaid interns are entitled to while working. Perhaps something slightly more than a video at orientation.

And no live demonstrations are necessary.

And remember, its not just women who suffer from sexual harassment in the workplace.

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Rob Anthony is a founding member of Law Street Media. He is a New Yorker, born and raised, and a graduate of New York Law School. In the words of Supreme Court Justice William O. Douglas, “We need to be bold and adventurous in our thinking in order to survive.” Contact Rob at staff@LawStreetMedia.com.

Featured image courtesy of [Melissa Gira via Flickr]

Robbin Antony

Rob Antony is a founding member of Law Street Media. He is a New Yorker, born and raised, and a graduate of New York Law School. Contact Rob at staff@LawStreetMedia.com.

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