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Second Circuit Review: Primary Beneficiary Test May Impede Intern Class Actions

July 22, 2015 download PDF

Litigation partners Martin Flumenbaum and Brad Karp's Second Circuit Review column appeared in the July 22 issue of the New York Law Journal. The article, "Primary Beneficiary Test May Impede Intern Class Actions," discusses Glatt v. Fox Searchlight Pictures, in which the U.S. Court of Appeals for the Second Circuit considered the appropriate standard for determining when an intern qualifies as an employee under the Fair Labor Standards Act, and therefore must be compensated for his work. The article examines how the court's newly articulated standard provides employers a reprieve on two distinct fronts: first, the flexible framework embodied in the court's new test seems to let employers accrue benefits from interns and still avoid FLSA obligations; and second, the court's holding creates strong precedent for employers defending against class actions.

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