Second Circuit Reverses Class Certification Ruling in Fox Searchlight Unpaid Intern Case, Directing Trial Court to View Economic Benefit Factors Through New Lens -

A federal appellate court in New York handed an apparent victory to employers who utilize unpaid internships. In Glatt v. Fox Searchlight Pictures, Inc., frequently referred to as the “Fox intern” case, the Second Circuit Court of Appeals reversed a 2013 district court ruling that had granted class certification to a plaintiff class of unpaid interns who had worked on the movie “The Black Swan” and other projects. The district court’s ruling brought substantial publicity to unpaid internships and was followed by the filing of literally dozens of lawsuits challenging unpaid internships. In reversing the district court, the Glatt opinion has potentially significant consequences for companies and for those who desire internships.

Perhaps most significantly, the Second Circuit reversed the decision to allow the case to go forward as a class action. Under the court’s analysis, class certification was reversed as a result of the highly individualized analysis required to determine whether unpaid interns must be paid. It remains unclear whether there are any circumstances where an unpaid intern case might proceed as a class action, but the opinion’s repeated reference to the requisite individualized analysis would appear to act as a significant impediment, if not a complete bar, to class certification in most cases. If that is correct, it would follow that we should see plaintiff/employee-counsel shift their recent emphasis away from this area of the law.