Fox Searchlight Can Appeal Unpaid Internship Class Action

In June, U.S. District Judge William Pauley III ruled that two former interns with the Fox Searchlight production company were owed compensation for unpaid wages. Plaintiffs argued that the work they routinely carried out – such as getting coffee for other employees and filling out paperwork – failed to constitute ‘training’ and was in essence identical to work carried out by paid employees. While this wasn’t the first time unpaid interns have complained they were being given mundane tasks, Judge Pauley ruled in the plaintiffs’ favor, sending shockwaves through the U.S. working world.

The company will be allowed to challenge the class certification and the summary judgment.

It was a ruling with far-reaching consequences. The proliferation of unpaid internships in the American workplace has gone unchecked for some time, with many interns unaware that the work they were carrying out may entitle them to payment. While unpaid internships are permitted by law, the circumstances and nature of the work must meet Department of Labor standards. In many cases, interns have been effectively working as employees without receiving suitable compensation. Following Judge Pauley’s ruling, the floodgates were opened, and a huge number of unpaid internships lawsuits have been filed against companies across the U.S.

Employers accuse the lawsuits of being frivolous and failing to grasp the point of an internship; those who have worked as unpaid interns say they are entitled to compensation and are working to prevent employees from taking advantage of other workers in the future.

As for Fox Searchlight, the company was given a slither of hope last week when The Second Circuit Court of Appeals granted their request to appeal certain aspects of Judge Pauley’s ruling, Deadline reports. Specifically, the company will be allowed to challenge the class certification and the summary judgment that found the two former interns, Alex Footman and Eric Glatt, were treated as Fox employees. Fox has always argued that the two were in fact working for the production company of the film’s producer, Darren Aronofsky. They also disagreed that the suit should be expanded to include all former and current Fox Entertainment Group interns.

The suit was first filed in September 2011. Fox reportedly sought the right to appeal in August 2013.