203 F.Supp.3d 344
S.D.N.Y.2016Background
- Six former unpaid interns (Leszuk, Rappaport, Spencer, Wagster, Wang, Wheels) sued Hearst alleging violations of the FLSA and NYLL for not paying minimum wage.
- Each intern performed magazine-related tasks (data entry, sample runs, bookings, marketing support, accessories handling, editorial assistance), received varying levels of hands-on experience, and listed internships on resumes or used supervisors as references.
- Most interns understood the positions were unpaid and not promises of paid employment; Hearst typically required a school credit letter for participation.
- Some interns received academic credit or had internships tied to coursework; others sought credit but did not ultimately receive it.
- The Second Circuit remanded after clarifying the applicable "primary beneficiary" test in Glatt v. Fox Searchlight Pictures, and Hearst moved for summary judgment under that standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interns are "employees" under FLSA/NYLL (primary beneficiary test) | Plaintiffs: work performed was largely menial, displaced paid employees, and lacked sufficient educational value to be unpaid internships | Hearst: internships provided hands-on educational benefits, were tied to academics/schedules, were unpaid with no expectation of hire | Court: Plaintiffs were interns, not employees; summary judgment for Hearst granted |
| Whether interns reasonably expected compensation or a job | Plaintiffs: sought more mentorship and substantive training; unpaid status led to exploitation | Hearst: interns knew positions were unpaid and not guaranteed jobs; proof of understanding supports intern status | Court: No dispute interns knew positions were unpaid; this factor favors Hearst |
| Whether internships provided training analogous to educational environment | Plaintiffs: tasks were rote and learned quickly; supervision inadequate | Hearst: interns gained practical, vocational skills and industry exposure | Court: Hands-on learning present; factor slightly favors Hearst |
| Whether intern work displaced paid employees | Plaintiffs: some tasks were scut work and sometimes substituted for paid roles | Hearst: work often complemented staff and provided educational benefit | Court: Evidence supports some displacement but also complementary work; factor slightly favors Plaintiffs |
Key Cases Cited
- Glatt v. Fox Searchlight Pictures, Inc., 811 F.3d 528 (2d Cir. 2015) (articulates the "primary beneficiary" multi-factor test for internships under FLSA/NYLL)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (summary judgment standard: materiality and genuine dispute definitions)
- Ricci v. DeStefano, 557 U.S. 557 (U.S. 2009) (discusses appellate review and standards for assessing evidence in context of motions)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (U.S. 1986) (standards for drawing inferences on summary judgment)
- Brock v. Superior Care, Inc., 840 F.2d 1054 (2d Cir. 1988) (worker/employee classification as question of law)
- Schumann v. Collier Anesthesia, P.A., 803 F.3d 1199 (11th Cir. 2015) (applies Glatt framework and warns against exacting formula for internship design)
- Allen v. Coughlin, 64 F.3d 77 (2d Cir. 1995) (courts must view evidence in light most favorable to non-movant on summary judgment)
