Worker Classification : Interns, Employees, And Independent Contractors

1406 Words Sep 9th, 2016 6 Pages
Worker Classification: Interns, Employees, and Independent Contractors An important part of complying with labor regulations is accurately identifying the relationship that exists between the company and its workers. In addition to broad federal laws that apply to most companies, businesses are subject to state laws, and sometimes additional laws specific to an industry at either the federal or state level. Classification of employees determines benefits, but also how company resources must be distributed (Hunt, 2015). As litigation involving groups of employees has become more common and the settlement amounts have increased exponentially (Calvasina, Calvasina, & Calvasina, 2010), the consequences of noncompliance, regardless of intent, can cripple businesses of any size. Determinations are not always straightforward and courts at different levels sometimes disagree as to the proper classification of a worker in a particular circumstance.
Unpaid Interns Eric Glatt, Alexander Footman, Kanene Gratts, and Eden Antalik filed an action against Fox Searchlight Pictures, Incorporated (FSP) and its parent company, Fox Entertainment Group, Incorporated (FEG) alleging that they were inaccurately classified as unpaid interns rather than paid employees (Glatt v. Fox Searchlight Pictures, Inc., 2013). The District Court granted the Defendant’s motion for summary judgment that Gratts’ action was filed beyond the statute of limitation, found that Glatt and Footman were employees of both…
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