On Friday, Jan. 30, the Second Circuit Court of Appeals in Manhattan, New York heard arguments addressing the legality of unpaid internship programs. The city expects to hear the court’s decision later this year. It seems inevitable that the pending decision will set a precedent for future internship organization that could reverberate across the state and possible the nation.
The suit has to do with two prior cases brought against companies by former interns. One case involved allegations against Fox Searchlight Pictures; the other involved allegations against the publishing behemoth Hearst Corporation, owner of magazines like Cosmopolitan and Marie Claire. The Fox interns won their case; the Hearst interns lost theirs.
Both cases concern a critical 1947 Supreme Court ruling that once dictated criteria for unpaid railroad training. The judge in the Fox case used the criteria as a strict standard, while the judge in the Hearst case saw the criteria as a broad set of best-practice guidelines. The appeals court will determine which ruling is lawful.