Law

Illegal Unpaid Interships Lawsuit – The Second Circuit Rules Against Conde Nast

The Second Circuit has ruled against an illegal unpaid internships lawsuit, which is likely to have implications for other courts. The Second Circuit covers Connecticut, New York, and Vermont, while the Eleventh Circuit includes Alabama, Georgia, and Florida. The court in New York awarded a settlement to former interns of Glatt Interactive for $7,500 apiece. This is far less than the $495 that the average unpaid intern makes. Meanwhile, the law firm Outten & Golden made around $220,000 in fees.

Conde Nast

The case against Conde Nast comes two days after Fox Searchlight Pictures was found in violation of labor laws for using unpaid interns to perform production tasks on the movie “Black Swan.” It is unclear what the outcome of the lawsuit will be, but it is expected to have a big impact on the future of intern-initiated lawsuits. The lawsuit is a win-win for the interns who lost out on money, but the verdict against Conde Nast is likely to cause more lawsuits.

Two former interns, Matthew Leib and Lauren Ballinger filed a class action lawsuit against the magazine, alleging that they were paid less than minimum wage. The New Yorker and W Magazine both admitted to paying interns a mere $1 an hour, and their attorneys argued that such tasks are equivalent to work performed by ordinary employees. The lawsuit was settled for a whopping $5.8 million, but the situation is still far from over.

Hearst

The Hearst Illegal Unpaid Internships lawsuit filed by Elizabeth Wang aims to force the magazine giant to pay the interns who worked for free during their summer internships. Wang claims that Hearst employs hundreds of unpaid interns at different titles. While the lawsuit is far from being a clear-cut win, it does appear that interns should be able to pursue compensation.

The lawsuits allege that the company’s internships violated minimum wage laws. It has since inspired similar lawsuits. Many media companies, including Conde Nast, Warner Music Group Corp., and Conde Nast, have settled similar cases with interns. A 2013 ruling in the Fox case prompted several other media companies to pay hundreds of interns. However, the U.S. Supreme Court has yet to address the distinction between paid and unpaid interns.

The Harper’s Bazaar intern is one of the most recent examples of this type of lawsuit. She worked unpaid at the magazine for an average of 55 hours per week while interning magazine. Her job duties included filing expense reports, supervising other interns, and coordinating fashion sample deliveries. Moreover, Wang alleges that Hearst Corp. violated federal and state wage and hour laws.

Hearst Corp.

In October, Hearst Corp. announced the acquisition of the Rodale magazine and book business. The purchase price was $225 million, according to some sources. The deal was expected to close in January after obtaining the necessary government approvals. The company continued to diversify its operations, including expanding into new markets and launching joint ventures. The following decade saw Hearst Corp. acquire several businesses that had been struggling to make money.

The company’s management changed over the years. After the retirement of former CEO Frank Berlin, the company began a process of restructuring by purchasing stock from charitable foundations established by William Randolph Hearst in the 1970s. This process allowed the family to regain control of the company’s assets, simplifying its chain of command. During the second half of the 1970s, the company hired a new CEO, John R. Miller. Bennack had served as the company’s top manager for twenty-four years, overseeing more than 85 percent of the company’s activities.

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