Ruling puts unpaid internships in jeopardy

Associated Press

WASHINGTON

Unpaid internships long have been a path of opportunity for students and recent grads looking to get a foot in the door in the entertainment, publishing and other prominent industries, even if it takes a generous subsidy from Mom and Dad.

But those days of working for free could be numbered after a federal judge in New York ruled this week that Fox Searchlight Pictures violated minimum-wage and overtime laws by not paying interns who worked on the production of the 2010 movie “Black Swan.”

The decision by U.S. District Judge William H. Pauley III may lead some companies to rethink whether it’s worth the legal risk to hire interns to work without pay. For many young people struggling to find jobs in a tough economy, unpaid internships have become a rite of passage essential for padding resumes and gaining practical experience.

In the ruling, Judge Pauley said Fox should have paid the two interns who filed the lawsuit because they did the same work as regular employees, provided value to the company and performed low-level tasks that didn’t require any specialized training.