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Fox Reaches Settlement in Landmark Lawsuit Over Unpaid Internships

Jul 12, 2016 / Media Coverage / Hollywood Reporter — Eriq Gardner

The five-year-old case that redefined the legality of the controversial labor practice may be coming to an end.

A major labor lawsuit over unpaid internships in the entertainment and media industry has reached a proposed settlement. On Tuesday, court papers were filed revealing that Fox has agreed to pay many of those who completed an unpaid internship at its film, television and digital divisions. If approved by the judge, the deal would bring an end to a case that resulted in a landmark 2nd Circuit opinion that provided guidance on when unpaid internships might violate minimum wage and overtime standards in the Fair Labor Standards Act.

The original lawsuit came from Alex Footman and Eric Glatt, who worked on Fox Searchlight's Black Swan and contended that they performed the type of work typically handled by paid employees. The suit then got bigger, with amended claims brought by added named plaintiffs such as Kanene Gratts, who worked on Searchlight's (500) Days of Summer as well as Eden Antalik, who participated in the Fox Entertainment Group internship program. The legal dispute also invited exploration of privilege, fairness, and social justice in how individuals access prestige industries like entertainment and media.
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The settlement covers those who did unpaid internships during the first nine months of 2010 at Fox Entertainment Group, Fox Filmed Entertainment, Fox Networks Group and Fox Interactive Media. The settlement also covers those who had unpaid internships in New York at those same divisions between 2005 and 2010 as well as those in California who worked between 2009 and 2010. Those class members will each get $495. The total sum of money being paid is unknown.

Glatt would receive $7,500, Footman $6,000 and Antalik $3,500. The law firm of Outten & Golden, representing the plaintiffs, would be able to apply for up to $200,000 for their attorneys' fees and reimbursement of out-of-pocket costs with an additional $20,000 going for settlement claims administrator.

A fairness hearing could be coming as the judge weighs whether to approve the settlement. Here's the terms of the settlement and the memorandum arguing why it should be accepted.

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