A New York-based media company has settled a time and attendance lawsuit with two former interns. According to The New School Free Press, in two separate instances dating back to 2009 and 2010, the company paid interns $1 per hour, which violates minimum wage standards of the Fair Labor Standards Act as well as New York Labor Laws.
"The Federal Fair Labor Standards Act and New York Labor Law do not allow employers to allow workers to work for free - even if the workers give their consent," the attorney for the plaintiffs was quoted by The New York Post.
Currently, the minimum wage standard set by the FLSA is $7.25 per hour and under NYLL guidelines, it is set at $8.00 per hour with a .75 increase set to go into effect December 31.
The lawsuit itself set in motion a change in federal policy as it relates to interns. In 2010, the U.S. Department of Labor enacted guidelines regulating payment for this type of employment, some of which include an agreement between the employer and the intern that they are not entitled to receive pay or a job at the conclusion of their internship.
The settlement amount in this particular case was undisclosed.
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