Class-Action: Unpaid Interns Change Their Tune

The Library of Birmingham - signs - Construction Site - Keep Out, by flickr user Elliot Brown, licensed by Creative Commons

Men at work (…for free)

The days of unpaid internships might finally be coming to an end. In what many see as the next chip to fall, Warner Music Group and Atlantic Records are being sued by former interns who were uncommonly compensated for their time at the group. Justin Henry, who worked for Atlantic from 2007-2008, represents the class action lawsuit filed in the state of New York, claiming he was improperly classified as an unpaid intern. Federal labor laws state that Henry was technically an employee and would have him at least making minimum-wage. Interns in this field often worked from 10am-6pm and were sometimes asked to stay later, yet they never received proper compensation. Read more

Maternity Leave No Reason to Discriminate for Mortgage Insurer

A pregnant woman, by Flickr user "karolajnat", licensed via Creative Commons.The mortgage insurer MGIC Investment Group has settled a federal lawsuit alleging that they refused to sell mortgage insurance to women on maternity leave.  The suit claimed that the company required 70 women to return to work before they would sell them the insurance, which “allows homebuyers to take out loans with down payments of less than 20%”, according to the Wall Street Journal.  Yesterday, the company settled for $550,000, with $511,000 to be compensation for the women and $39,000 as a civil penalty to the government.  In addition, MGIC will have to train its employees on discrimination law and revamp its policies concerning customers on maternity leave.  The company has also entered a preliminary settlement in a related class action suit in order to avoid spending any more money on a lawsuit they will likely lose.

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