Last week, an Indiana federal court dismissed a lawsuit brought by former University of Pennsylvania (“Penn”) athletes against the National Collegiate Athletic Association (“NCAA”) and a number of its member schools over their alleged employment status and corresponding minimum wage protection under the FLSA. Berger, et al. v. NCAA, et al., S.D. Ind., No. 1:14-CV-01710,
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Eleventh Circuit Adopts Second Circuit’s “Primary Beneficiary” Test to Determine Compensability of Internships
The Court of Appeals for the Eleventh Circuit last week adopted the Second Circuit’s “primary beneficiary” test as the appropriate test for determining whether an unpaid clinical intern was truly an “employee” within the meaning of the FLSA. Schumann v. Collier Anesthesia, P.A., 2015 U.S. App. LEXIS 16194 (11th Cir. 2015).
In rejecting the…
Pennsylvania Federal Court: Cosmetology Student Not An “Employee” Entitled To Minimum Wage
Last week, a Pennsylvania federal judge held that a former cosmetology school student was not entitled to minimum wage as an “employee” under the Fair Labor Standards Act or the Pennsylvania Wage Payment and Collection Law. Jochim v. Jean Madeline Educ. Ctr. of Cosmetology, Inc., 2015 U.S. Dist. LEXIS 45663 (E.D. Pa. Apr. 8,…
Origins of Wage-and-Hour Jurisprudence: Portland Terminal
Many current FLSA compensation issues which are the subject of widespread litigation – such as the current wave of intern cases – have their legal underpinnings in Supreme Court authority decided during the 1940s in the years following the enactment of the FLSA (1938) and the Portal-to-Portal Act (1947). For example, courts seeking to interpret…
New Jersey Court Finds Beauty School Students Not “Employees”
A development in the ongoing litigation regarding the scope of the term “employee” for purposes of the Fair Labor Standards Act involves a rash of cases filed against beauty schools. In these cases, students who provide services to customers as part of their training allege they should be compensated for such work. A New Jersey…
Chamber of Commerce’s Amicus Brief Argues For Economic Value of Internships to Businesses, Employees and Students
As the Court of Appeals for the Second Circuit prepares to hear argument and ultimately rule in the consolidated appeal involving former interns for Hearst Publishing and Fox Searchlight seeking minimum wage under the FLSA, the Court received amicus submissions from several organizations, including the U.S. Chamber of Commerce, the largest employer association.
The Chamber’s…
MLB All-Star Weekend Volunteers Not Employees Under FLSA
Judge John G. Koeltl from the Southern District of New York has dismissed the minimum wage claims of an individual who served as a volunteer at last year’s Major League Baseball All Star Weekend FanFest, held at New York City’s Javits Center, based on the “amusement or recreational establishment” exemption. Chen v. Major League …
Federal Appeals Court Affirms Ruling That Public Sector Union President Was “Volunteer” Outside Protection Of FLSA
Courts continue to wrestle with claims brought by individuals treated by businesses as outside the scope of the FLSA’s minimum wage and overtime requirements. Many of these claims are asserted by individuals classified as volunteers and of course interns, all claiming to be employees entitled to the protections of the FLSA. In one such…
Supreme Court Declines Review of Intern Compensability Issue
While the compensability of time spent in internship programs continues to be an hotly contested litigation issue, the United States Supreme Court has declined an opportunity to provide clarity in this area, denying certiorari to a Florida medical billing intern whose claim was rejected last year by the Eleventh Circuit. Kaplan v. Code Blue …
Intern Filings Seeking Alleged Unpaid Wages Continue
In the wake of the first substantive decisions issued as part of the growing trend of wage-and-hour claims being initiated by interns recently seeking alleged unpaid minimum wages and overtime, several more high profile filings have become public over the last few weeks, including most recently a claim against popular internet media conglomerate Gawker. Mark, …