Employee Advocacy for Nonemployee, Unpaid Interns Is Not Protected by National Labor Relations Act

Unpaid interns are not “employees” as defined by the National Labor Relations Act (NLRA), and employee advocacy on their behalf is not protected concerted activity under Section 7 of the NLRA, the National Labor Relations Board (NLRB) has ruled. Amnesty International of the USA, Inc., 368 NLRB No. 112 (Nov. 12, 2019).

The NLRB also concluded the employer’s expression of frustration and disappointment with its employees’ actions on behalf of the interns was not an unlawful implied threat.

Background

Amnesty International is a nonprofit advocacy organization that typically hires 15 unpaid interns to volunteer each academic semester.

In February 2018, a group of interns, assisted by an employee, circulated a petition requesting the organization pay them for their volunteer work. Nearly all the organization’s employees signed the petition. At the same time, the organization’s executive team was considering a paid intern program with only three interns.

On April 2, 2018, unaware of the unpaid intern’s petition, the Executive Director of the organization shared the organization’s plans for a paid internship program during an employee meeting. The unpaid interns sent their petition to the Executive Director the next day.

On April 9, 2018, the Executive Director held separate meetings with the current interns and the employees who signed the petition to announce plans to implement the paid internships that fall. The employees reacted negatively and expressed concern about the reduced number of interns. The Executive Director stated that she was disappointed the employees did not take advantage of the organization’s open-door policy to discuss the matter with management before using a petition. The Executive Director also stated that she viewed the petition as adversarial and felt it threatened litigation.

On May 9, 2018, the employee who assisted the unpaid interns with their petition met privately with the Executive Director. The employee recorded the conversation. The Executive Director stated she was “very embarrassed” that her employees felt unable to approach her about the issue and “disappointed that she did not ‘have the kind of relationship with staff’ that she thought she had.” The Executive Director said that it would have been “really helpful” to know about the intern’s interest in paid internships in advance and that the employee could have told the interns to “give me a heads-up to let me know it’s coming.” The Executive Director indicated that a petition “sets off a more adversarial relationship” and is not effective when the demand could “be met without applying that pressure.” She further stated, “you could try talking to us before you do another petition.”

Administrative Law Judge Decision

After a trial, ALJ Michael A. Rosas held that the employees had engaged in protected activity under Section 7 of the NLRA by joining the interns’ petition. He also determined the organization violated Section 8(a)(1) of the NLRA by: (1) instructing employees to make complaints orally before making them in writing; (2) threatening unspecified reprisals because of the employees’ protected concerted activity; (3) equating protected concerted activity with disloyalty; and (4) requesting employees to report to management other employees who are engaging in protected concerted activity. He dismissed the allegation that the Executive Director’s statements “impliedly threatened to increase employees’ workloads as a result of the petition.”

NLRB Decision

The NLRB reversed the ALJ’s conclusions and dismissed the complaint.

Holding that “[a]ctivity advocating only for nonemployees is not for ‘other mutual aid or protection’ within the meaning of Section 7,” the NLRB reasoned that the unpaid interns were not employees because they did not “receive or anticipate any economic compensation from [Amnesty International].”

The NLRB also held that the Executive Director’s statements did not coerce the employees. It concluded the Executive Director’s statements fell within Section 8(c) of the NLRA, which permits employers to express views, arguments, or opinions that are not accompanied by coercion (e.g., threats or promises of benefits). Considering the timing of the petition and the employees’ reaction, the NLRB determined that the Executive Director’s “opinions about how to handle petitions in the future to be, at most, suggestions, rather than commands or even direct requests.” Her statements “clearly expressed her frustration that, as a result of the lack of communication, management’s attempt to provide a positive response to the … petition had instead resulted in a backlash from employees.” However, the comments did not rise to the level of conveying anger, threaten reprisal, or accuse the employees of disloyalty, the NLRB ruled. Therefore, it concluded they did not violate Section 8(a)(1) of the NLRA.

***

The NLRB has been signaling a hesitancy to impose obligations on employers outside the traditional employment context. It has proposed exempting paid undergraduate and graduate students from the NLRA, for example. Over the last several years, as employers are forced by the low employment rate to increase their use of nonemployees, unions have increased their efforts to expand the NLRA’s reach by organizing non-traditional workers, including temporary campaign workers and graduate students.

 


Jackson Lewis P.C. © 2019
Read more about NLRB rulings on the National Law Review Labor & Employment law page.

School is Almost Out and Summer Interns are (Still) In

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With the Memorial Day weekend approaching, many people are looking forward to hitting the beach, firing up the grill and polishing off their golf clubs, which are, for many Northeasterners, covered in cobwebs after this long winter. For employers, summer often means the arrival of (potentially unpaid) interns.

We have written before about the recent wave of high-profile wage and hour class actions lawsuits from interns. Last week, just in time for the arrival of the newest batch of summer interns, a New York federal judge conditionally certified an FLSA class of approximately 3,000 interns of Warner Music Group who were allegedly misclassified as exempt from minimum wage and overtime requirements. The recent litigation has also prompted new legislation to protect interns, including a New York City law aimed at ensuring that unpaid interns will have the right to sue if they are harassed or discriminated against by an employer.

Still, many companies cannot resist the temptation of free or relatively cheap temporary labor, and, in a still-rebounding economy, job-seekers continue to look to internships to build their resumes and gain experience. So, what can a company do in order to ensure a smooth, issue-free summer with its interns?

  • The first and most obvious answer is to treat interns as temporary employees. Have interns track time like any other non-exempt employees. Pay them at least minimum wage for all hours worked and overtime for any hours worked over 40 per week (assuming they do not meet some exemption from the minimum wage and overtime laws). Comply with all state laws regarding working and meal breaks. This approach will alleviate the vast majority of legal issues with respect to employing summer interns.
  • Require interns to attend the same non-discrimination, non-harassment trainings as other employees. Draft job descriptions for interns and set appropriate expectations for the program. Have clear policies, including a policy regarding expected conduct at work-related social events, which interns are required to review and acknowledge in writing.
  • If you decide against paying interns, you should carefully review intern program to ensure that it is legally compliant with appropriate wage and hour laws. In order for an intern to be legally unpaid under federal law:
  1. The intern experience must be similar to training given in an educational environment;
  2. The internship must be for the benefit of the intern (meaning they gain tangible training, experience, etc.);
  3. Interns may not displace or supplant regular employees, or perform duties traditionally rendered by regular employees;
  4. The company must not get any immediate advantage from the intern’s activities;
  5. The intern must not be entitled to a job at the end of the internship; and
  6. The company and the intern should have a written agreement (or an understanding at the absolute minimum) that the intern is not entitled to receive remuneration for his/her work.

According to the Department of Labor, if any one of these criteria is not met the company must pay the intern for all time worked. Some states have their own laws regarding interns, so make sure you are in compliance with those laws as well.

If your summer intern program begins soon after Memorial Day, now is the time to review you policies. A little bit of preparation can ensure a sunny summer for all.

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