Judge Certifies Black Swan Unpaid Intern Class Action Lawsuit

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Judge Certifies Black Swan Unpaid Intern Class Action Lawsuit

By Anne Bucher

On June 11, 2013, a federal judge approved a class action lawsuit for unpaid interns who worked on production of the popular film “Black Swan,” allowing them to proceed with claims against the defendants. The plaintiffs allege that they served an essential function for the company without receiving special job training and that they should have been paid for their work.

Judge William Pauley III ruled that Fox Searchlight Pictures Inc. (“Searchlight”) and Fox Entertainment Group, Inc. (FEG) had violated federal laws by using unpaid interns to perform work, without offering job training that they could have gained as entry-level employees. FEG is the parent corporation of Searchlight and approximately 800 other subsidiaries. In the court opinion, the judge found that the plaintiff interns qualified as employees of the company.

Plaintiffs in the “Black Swan” intern class action lawsuit were unpaid interns who worked on production of the popular film Black Swan. They claim that they spent hundreds of hours working on the set of “Black Swan,” performing essential work functions, for no pay. They received no training and no promise of a full-time job once they completed their internship period. They assert that more than 100 unpaid interns worked on the film, in violation of the Fair Labor Standards Act (FLSA).

The film “Black Swan” earned over $300 million. Searchlight’s annual revenues amount to approximately $35 billion. The FLSA requires employees of for-profit corporations to receive minimum wage and overtime pay. Employers are able to offer unpaid internships as long as the internship program offers a genuine training program. In the unpaid internship class action lawsuit, the plaintiffs successfully argued that they performed essential job functions that a paid employee would have performed and that they received no specific training that would help them further their careers.

Judge Pauley granted the plaintiffs’ motion for summary judgment, finding that they met the qualifications of employees rather than interns. In the opinion, Judge Pauley acknowledged that the plaintiffs received benefits from the internship, such as a resume listing, job references and work experience. However, Judge Pauley clarified: “Resume listings and job references result from any work relationship, paid or unpaid….” These benefits are “incidental to working in the office like any other employee” as opposed to an internship that was structured to benefit the plaintiffs. As a result, Searchlight reaped the benefits of their unpaid labor.

This decision has raised uncertainty about the widespread use of unpaid internships at for-profit corporations. While some people view them as a way to pad resumes and gain valuable work experience in certain professions, others view unpaid internships as a way for powerful corporations to exploit recent college graduates. At least six new class action lawsuits have been filed regarding the legality of unpaid internships.

The “Black Swan” Unpaid Intern Class Action Lawsuit case is Eric Glatt, et al. v. Fox Searchlight Pictures, Case No. 11-cv-6784, in the U.S. District Court for the Southern District of New York.

The plaintiffs are represented by Adam T. Klein, Rachel M. Bien, Jennifer L. Liu, Juno E. Turner, Sally J. Abrahamson of Outten & Golden, LLP.

Updated June 18th, 2013

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions