Internship ruling may upset film industry
Companies that produce films, television shows and stage performances may have to change their approach to learning opportunities in light of a ruling by a federal district court that found interns working on a wide-release film were actually employees and deserved wages for their time and attendance.
The ruling was based on findings that the internships weren't mostly educational in nature and the production company received a financial asset from the work of the interns, according to the New York Times. The company is appealing the ruling.
The distinction between interns - unpaid persons who voluntarily work with a company to learn about the industry, skills and processes that the organization is involved in - and employees can be confusing. The FLSA provides a list of rules and regulations that govern what interns can or can't do, with two of the most important concepts being that interns can neither regularly perform work commonly completed by paid staff nor can companies directly benefit from the activities interns engage in.
Tracking employee attendance should be a priority for companies to keep costs like overtime reasonable and also to maintain proper records in accordance with the law.
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