Unpaid “Black Swan” Interns Entitled to Wages

An Oscar-winning movie was the backdrop for a recent federal court decision that serves as a strong caution for employers. A federal court ruled that two unpaid production interns on the set of the movie “Black Swan” actually “worked as paid employees” and were misclassified as unpaid interns.

The complaint was filed by Eric Glatt and Alex Footman, and alleged violations of federal and New York wage and hour laws. “Fox Searchlight’s unpaid interns are a crucial labor force on its productions, functioning as production assistants and bookkeepers and performing secretarial and janitorial work,” the interns stated in their complaint. Fox Searchlight “has been able to reduce its film production costs by employing a steady stream of unpaid interns.”

The court ruled that the workers were not bona fide interns, but actually employees performing the same types of tasks that paid production assistants performed. The court looked at a variety of factors to find that the workers were not interns:

• There was no internship experience structured to benefit them. Although the two production workers received some benefits, such as resume listings, job references and an understanding of how a production office works, these benefits were the same as any other employee would obtain and were not the result of an internship intentionally structured for their benefit  
• The workers did not receive any formal training or education during the internship
• The workers performed basic administrative tasks that would have been performed by regular employees, such as filing, taking lunch orders, removing garbage and running errands

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

Do you have unpaid “interns” working for you this summer? HRCalifornia subscribers can turn to the HR Library’s Interns page and this easy to follow Q&A for guidance. Not a subscriber? Start a Free Trial now.

Ready to Spring Forward?

Daylight saving time is set to start Sunday, March 10. This will make for many a cranky worker next Monday morning, and lots of grumbling about needing extra coffee.

For most people, the time shift means adjusting various clocks around the house that aren’t smart enough to adjust themselves and losing an hour of beauty rest.

But people who work the graveyard shift might lose something else. What should employers know about timekeeping practices for workers whose shifts are affected by the time change?

Shane Peterson, Content Development Editor

HRCalifornia subscribers can get the answer in this time change Q&A in the HR Library. Not a subscriber? Take a 15-day Free Trial now.     

Live From Costa Mesa

It’s cold in Northern California so this week we're visiting warmer weather in Southern California.

Our 2013 seminars start with:

• HR 101 (Monday) and HR 201 (Tuesday) in Costa Mesa. Our 201 update will be packed with information on the new laws for 2013, as well as the newest regulations for pregnancy disability and disability discrimination. 
• Classifying and Paying Exempt Employees in Costa Mesa (Tuesday) and Long Beach (Wednesday). Misclassification of employees has been one of the most common types of class action lawsuits against employers in the last few years. 

We hope to see you this week in Costa Mesa, Long Beach or Anaheim!

Erika Frank and Susan Kemp

 

New 2013 Exempt Classification Rates

California’s Department of Industrial Relations (DIR) announced rate changes for the computer software employee exemption and the licensed physician or surgeon exemption.

The new rates take effect January 1, 2013.

For the computer software employees exemption:

• The minimum hourly rate of pay exemption increased to $39.90 from its previous rate of $38.89
• The minimum monthly salary increased to $6,927.75 from its previous rate of $6,752.19
• The minimum annual salary exemption increased to $83,132.93 from its previous rate of $81,026.25.

For the licensed physician or surgeon exemption:

• The minimum hourly pay for licensed physicians and surgeons increased to$72.70 from $70.86

These rates are tied to the California Consumer Price Index (CCPI) for Urban Wage Earners and Clerical Workers. The 2013 rate changes reflect the 2.6 percent increase in the CCPI.

Read the DIR memos announcing the rate changes. 

CalChamber members can get more information on the computer professional exemption and the licensed physicians and surgeons exemption on HRCalifornia. Not a CalChamber member? See what you're missing.

On the Brink of a Decision

The California Supreme Court will soon issue its opinion in the widely talked about Brinker meal and rest periods case. A hearing is set for November 8, 2011, and a final decision is due within 90 days of that date.

In question are the meaning and requirements of California’s rule on meal and rest breaks. The court’s written opinion will decide:

• Whether employers must ensure employees take their meal and rest periods or simply make the breaks available
• When employees must take their meal break
• The number of required rest breaks during a shift and when they must occur

Sign up by Monday, November 7, 2011, to receive email notification of the court’s decision, plus advance notice of CalChamber’s follow-up webinar, "Meal & Rest Breaks: What Does the Brinker Decision Mean for Your Workplace?"

Our employment law experts, Susan Kemp and Erika Frank, will analyze the Brinker decision and discuss how it impacts current meal and rest break requirements. You’ll also learn best practices and tips on complying with the court’s ruling.

Request the notification alert, and CalChamber will give you advance registration notice for the webinar before we officially announce the webinar date, time and details.