California Court Confirms Unpaid Interns Have Standing to Pursue Claims Under the Fair Employment and Housing Act, Even When Doing So as Part of a School Program
Many entities operate intern programs. Some, particularly educational institutions, do so without pay. Because of the potential risk of claims for unpaid wages and penalties, employers should always consult with legal counsel before engaging the services of anyone, even interns, without pay to ensure compliance with local, state, and federal wage and hour laws. However, a recent appellate court decision highlights another issue for consideration when engaging interns, specifically, potential liability for harassment, discrimination, and/or retaliation. Attempting to “provide needed clarity,” the California Court of Appeal for the Fourth Appellate District confirmed that unpaid interns have standing to pursue such claims under the Fair Employment and Housing Act and that they maintain standing even when part of a school program and even when working offsite if the entity offering the internship supervises and/or controls the intern’s work.
Employee with Mistaken Legal Theory May Pursue Labor Code Section 1102.5 Whistleblower Retaliation Claim if the Employee Reasonably Believes the Employer’s Conduct was Unlawful
In a case that went from a jury verdict in favor of the employee to a judgment notwithstanding the verdict in favor of the employer, a California appellate court held this month that an employee could prevail on a whistleblower claim pursuant to Labor Code section 1102.5(b), notwithstanding the fact that the underlying conduct about which the employee claimed was not unlawful, because the employee had reasonable cause to believe the employer’s conduct violated the law, shared his concerns about the perceived violation with his employer, and was terminated for doing so.