Glatt v. Fox Searchlight Pictures, Inc.
811 F.3d 528
| 2d Cir. | 2015Background
- Plaintiffs were unpaid interns at Fox Searchlight/Fox corporate offices (roles in production, post-production, accounting, publicity) who sued under the FLSA and New York Labor Law for unpaid minimum wages and overtime.
- Eric Glatt and Alexander Footman moved for partial summary judgment that they were employees; Eden Antalik moved to certify a New York class (2005–2010) and conditionally certify a nationwide FLSA collective (2008–2010).
- The district court granted Glatt and Footman partial summary judgment and certified Antalik’s Rule 23 New York class and a conditional nationwide FLSA collective; defendants obtained interlocutory appeal under 28 U.S.C. §1292(b).
- The central legal question: when does an unpaid intern qualify as an "employee" under the FLSA (and NYLL) and thus must be paid? The district court applied a DOL six-factor test but balanced factors rather than requiring all be met.
- The Second Circuit vacated the district court orders and remanded, adopting a flexible "primary beneficiary" test with a non-exhaustive list of seven considerations focusing on whether the intern or employer is the primary beneficiary of the relationship.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Glatt and Footman are "employees" under the FLSA/NYLL | Employer received immediate advantage; interns should be treated as employees when employer benefits | Use a primary-beneficiary test weighing totality of circumstances; employer not necessarily required to pay if intern primarily benefits | Vacated summary judgment; adopted a flexible primary-beneficiary test and remanded for further factfinding |
| Whether Antalik’s New York Rule 23 class should be certified | Common proof (e.g., policy of replacing paid workers with interns) shows predominance of common issues | Employment-status inquiry is individualized; variations across divisions/departments defeat predominance | Vacated class certification; individualized inquiries predominate under new legal standard |
| Whether nationwide FLSA collective should be conditionally certified | Modest showing that interns were victims of a common policy supports conditional certification at step one | Wide variation across internships (jurisdictional and programmatic) undermines similarity | Vacated conditional certification; plaintiffs failed to show interns were similarly situated under the newly articulated test |
Key Cases Cited
- Velez v. Sanchez, 693 F.3d 308 (2d Cir. 2012) (summary judgment and FLSA employee-status framework)
- Zheng v. Liberty Apparel Co., 355 F.3d 61 (2d Cir. 2003) (NYLL construed like FLSA employee definition)
- Walling v. Portland Terminal Co., 330 U.S. 148 (U.S. 1947) (trainee/intern analysis informing unpaid-worker exceptions)
- Barrentine v. Arkansas-Best Freight Sys., Inc., 450 U.S. 728 (U.S. 1981) (workers cannot waive FLSA minimum-wage rights)
- Tony & Susan Alamo Found. v. Sec’y of Labor, 471 U.S. 290 (U.S. 1985) (limits on exceptions to FLSA coverage)
- Barfield v. N.Y.C. Health & Hosps. Corp., 537 F.3d 132 (2d Cir. 2008) (economic-reality test; flexible inquiry)
- Myers v. Hertz Corp., 624 F.3d 537 (2d Cir. 2010) (two-step FLSA collective-certification framework)
- In re U.S. Foodservice Inc. Pricing Litig., 729 F.3d 108 (2d Cir. 2013) (Rule 23 predominance standard)
