Are Unpaid Internships Illegal in Arizona?

By Lindsay G. Leavitt

To pay, or not to pay? For Arizona employers offering internships, that is the question. Since the Great Recession, the number of unpaid internships has mushroomed, presumably because employers desire to reduce costs while students still need to bolster their resumes. What for-profit employers need to know, however, is that most unpaid internships violate Federal and Arizona laws.

The Fair Labor Standards Act (FLSA) is a federal law that defines “employ” and “employee” very broadly. Interns who qualify as employees under the FLSA must be compensated pursuant to federal and state minimum wage and overtime laws. Several big companies, including Fox Searchlight and NBC Universal, have recently been hit with million-dollar class action lawsuits from former and current unpaid interns. In addition to private lawsuits, employers violating the FLSA can face stiff fines, including the payment of back taxes.

The Department of Labor has established six criteria that must be met in order for an unpaid internship to be legal in the for-profit context:

1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment;
2. The internship experience is for the benefit of the intern;
3. The intern does not displace regular employees, but works under close supervision of existing staff;
4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
6. The employer and intern understand that the intern is not entitled to wages for the time spent in the internship.

Most unpaid internships in Arizona cannot meet the above six criteria. Recognizing this, the Department of Labor is cracking down on unpaid internships in an attempt to discourage the practice.

Before offering an unpaid internship this summer, Arizona employers should seek the advice of competent legal counsel to prevent their internship program from becoming a Shakespearean tragedy.

The Jennings Strouss Foundation Supports Girls on the Run

PHOENIX, Ariz. – (April 29, 2015) Jennings, Strouss & Salmon’s charitable foundation, the Jennings Strouss Foundation, recently teamed up with the non-profit organization Girls on the Run as the Presenting Sponsor of its April 26th 5K event.

Girls on the Run is a non-profit organization dedicated to creating a world where every girl knows and activates her limitless potential and is free to boldly pursue her dreams. Its mission focuses on positive youth development, combining interactive curriculum and running to cultivate self-respect and healthy lifestyles in young girls. For more information about the Girls on the Run 5K, please visit www.gotrmc.org.  

As the presenting sponsor of the Girls on the Run 5K, staff and attorneys from Jennings Strouss supported the girls through a financial contribution, the creation of a slew of motivational posters, volunteering as running buddies and providing games for all to participate in after the run had concluded. Those who volunteered as running buddies partnered with young girls and accompanied them through their 5K, providing encouragement along the race route as well as celebrating the accomplishments at the finish line.

“Serving as the presenting sponsor of the Girls on the Run 5K was an honor for all of us at Jennings Strouss,” said Keith Overholt, President of the Jennings Strouss Foundation and Member of Jennings Strouss. “The faces of the girls crossing the finish line showed pride, accomplishment and determination. We were thrilled to play a small role in helping Girls on the Run spread its positive message throughout Phoenix.”

About Jennings, Strouss & Salmon, PLC

Jennings, Strouss & Salmon, PLC, has been providing legal counsel for over 70 years through its offices in Phoenix, Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; legal ethics; litigation; professional liability defense; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.

~JSS~

Jennings Strouss Attorneys Recognized in 2015 Washington DC Super Lawyers®

Washington, D.C. (April 29, 2015) – Jennings, Strouss & Salmon, PLC announced that firm members Debra D. Roby, Joel L. Greene, Gary J. Newell, Alan I. Robbins and Deborah A. Swanstrom have been listed in the 2015 Washington DC Super Lawyers^® in the area of Energy and Resources.

Debra D. Roby is Chair of the firm's Energy practice group and has extensive experience representing clients before the Federal Energy Regulatory Commission (FERC) and related courts. She counsels clients on a variety of energy matters, including electric transmission access and rate proceedings, regional transmission organizations, organized electric power markets, hydroelectric licensing and compliance, contract negotiations, complaint proceedings, NERC reliability compliance, audits and appeals, and other matters.  

Joel L. Greene has more than 40 years of experience assisting clients in energy regulatory matters, legal strategic planning, contract negotiations and advocacy before FERC, U.S. Department of Transportation, state commissions, and the courts. Mr. Greene is very active in the energy industry, having served on the North American Energy Standards Board and as an officer of the Energy Bar Association. In addition, he served as chair of the International District Energy Association (IDEA) and is currently the Association’s legal counsel.

Gary J. Newell has extensive experience in energy law, having focused his legal practice on regulatory and contract issues affecting both suppliers and purchasers of wholesale electricity and bulk power transmission services. Since 1978, Mr. Newell has represented municipalities, municipal joint action agencies and cooperative utility systems in a broad array of administrative and appellate proceedings, at both the state and federal levels, involving the rates, terms and conditions for energy-related products and services. Mr. Newell has also been an active participant in negotiations involving the formation of Regional Transmission Organizations (RTOs) and centralized wholesale electricity markets in several regions of the U.S.

Alan I. Robbins is an experienced energy lawyer and administrative litigator before the FERC and related courts. For over 35 years, Mr. Robbins has helped his clients navigate a broad range of energy issues, including restructuring of the electric industry and the development electric power markets, traditional electric rate matters, utility merger proceedings, contract negotiations, hydropower licensing, project development, and overall business strategies. His clients include municipal joint action agencies, generation and transmission cooperatives, a state utility commission, individual municipal and cooperative electric systems, larger end-users, and other market participants.

Deborah A. Swanstrom has more than 25 years of experience representing clients from diverse segments of the electric and natural gas industries on regulatory matters related to ratemaking, open access, transmission projects, renewable generation projects, interconnections, hydropower project exemptions and energy trading. Ms. Swanstrom counsels clients on FERC and Commodity Futures Trading Commission (CFTC) regulations, reliability standards developed by NERC and regional entities, and compliance with the Dodd-Frank Act, Federal Power Act and Natural Gas Act. She has represented government and investor-owned electric utilities, investors in generation and transmission projects, industrial electricity consumers, state and local regulators, gas pipelines, local distribution companies, and producers and marketers.

The selections for the top attorneys in Washington, DC are made by the research team at Super Lawyers, which is a service of the Thomson Reuters Legal Division based in Eagan, MN. Each year, the research team undertakes a rigorous multi-phase selection process that includes a survey of attorneys, independent evaluation of candidates by the attorney-led research staff, a peer review of candidates by practice area, and a good-standing and disciplinary check. Only five percent of attorneys are named by Super Lawyers.

About Jennings, Strouss & Salmon, PLC

Jennings, Strouss & Salmon, PLC, has been providing legal counsel for over 70 years through its offices in Phoenix, Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; legal ethics; litigation; professional liability defense; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.

~JSS~

Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806

Twenty-Two Jennings Strouss Attorneys Recognized in 2015 Edition of Southwest Super Lawyers®

PHOENIX, Ariz. (April 29, 2015) – Jennings, Strouss & Salmon, PLC, a leading Phoenix-based law firm, announced that twenty-two attorneys have been listed in Southwest Super Lawyers^® magazine for 2015, including seven 2015 Southwest Rising Stars.   

The Jennings Strouss attorneys listed in 2015 Southwest Super Lawyers are:

• Gerald W. Alston – Business Litigation
• Timothy W. Barton – Real Estate
• David Brnilovich – Business Litigation
• Richard K. Delo – Personal Injury Medical Malpractice: Defense
• John J. Egbert – Employment  & Labor
• Lee E. Esch – Real Estate
• Jay A. Fradkin – Personal Injury Medical Malpractice: Defense
• Richard Lieberman – Mergers & Acquisitions
• Jay M. Mann – Construction Litigation
• Bruce B. May – Real Estate
• Michael R. Palumbo – Business Litigation
• J. Scott Rhodes – Professional Liability: Defense
• Jack N. Rudel – Tax
• John G. Sestak, Jr. – General Litigation
• Bradley J. Stevens – Bankruptcy: Business

The attorneys listed as 2015 Southwest Rising Stars are:

• Jeffrey D. Gardner – Securities Litigation
• Eric D. Gere – Business Litigation
• Kerry A. Hodges – Business Litigation
• Kami M. Hoskins – Bankruptcy: Business
• Bradley V. Martorana – Business/Corporate
• Anne E. McClellan – Civil Litigation: Defense
• Norma C. Izzo – Family Law

The selections for the top attorneys in Arizona are made by the research team at Super Lawyers, which is a service of the Thomson Reuters Legal Division based in Eagan, MN. Each year, the research team undertakes a rigorous multi-phase selection process that includes a statewide survey of attorneys, independent evaluation of candidates by the attorney-led research staff, a peer review of candidates by practice area, and a good-standing and disciplinary check. State-wide, up to five percent of attorneys are named by Super Lawyers, and no more than 2.5 percent of attorneys under the age of 40 and practicing 10 years or less are included as Rising Stars.

About Jennings, Strouss & Salmon, PLC

Jennings, Strouss & Salmon, PLC, has been providing legal counsel for over 70 years through its offices in Phoenix, Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; legal ethics; litigation; professional liability defense; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.

~JSS~

Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806

Jennings, Strouss & Salmon Attorneys Recognized as “Top Lawyers”

Timothy W. Barton and Jack N. Rudel Selected for

Az Business Magazine’s Top Lawyers List 

  

PHOENIX, Ariz. (April 28, 2015) – Jennings, Strouss & Salmon, a leading Phoenix-based law firm, is pleased to announce that Timothy W. Barton and Jack N. Rudel were included in the March/April issue of Az Business Magazine’s “Top 100 Lawyers in Arizona.” Lawyers were selected based on career achievements and commitment to the legal industry. 

About Jennings, Strouss & Salmon, PLC

Jennings, Strouss & Salmon, PLC, has been providing legal counsel for over 70 years through its offices in Phoenix, Peoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; legal ethics; litigation; professional liability defense; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedIn, Facebook and Twitter.

The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.

~JSS~

FERC Conditionally Approves Risk-based Electric System Reliability Registration

By Daniel E. Cooper, P.E. 

On March 19, 2015, The Federal Energy Regulatory Commission ("FERC") issued an order in Docket No. RR15-4 (the “Order”) addressing a proposal by the North American Electric Reliability Corporation ("NERC") to implement a Risked-Based Registration (“RBR”) proposal. The goal of NERC’s RBR proposal is to achieve an effective application of industry resources by considering the potential impact an entity has on the reliability of the Bulk Electric System (BES) when determining that entity’s Compliance Registry and Reliability Standards obligations.  The Order was generally supportive of NERC’s RBR concept and accepted much of the RBR proposal.  However, FERC rejected some parts of the RBR proposal, expressing concern about potential harm to BES reliability.  The highlights of the Order are as follows:

FERC accepted NERC’s proposal to base BES reliability registration and compliance requirements on the potential impact an entity poses to BES reliability.

FERC accepted NERC’s proposal to create a NERC-led centralized Review Panel that will analyze requests to: 1) have entity either not be added to, or else removed from, NERC’s Compliance Registry; 2) add an entity to the Compliance Registry due to that entity’s potential impact on BES reliability when the entity would otherwise not be required to register; 3) settle disputes over application of Registry Criteria; and 4) develop recommendations on whether an entity should be responsible for only a subset of applicable Reliability Standards requirements.

FERC approved NERC’s proposal to increase the threshold for registration as a Distribution Provider from systems having a peak load of 25 MW to those with a peak load of 75 MW.  However, distribution systems that have Under-frequency Load Shed equipment must continue to meet certain reliability requirements regardless of peak load.

FERC accepted the removal of the Purchase-Selling Entity (PSE) and Interchange Authority (IA) functional classes from the Compliance Registry, agreeing those classes perform market or commercial activities that have no material impact on BES reliability.

FERC rejected, without prejudice, NERC’s proposal to remove the Load Serving Entity (LSE) functional category from the Compliance Registry. FERC's expressed concern was removal of the LSE category could result in some load and load forecast information not being reported for system modeling and transmission planning. FERC recognized that load potentially not reported amounts to a fraction of a percent of overall system load.  However, FERC appeared unwilling to accept any loss of load information.  FERC directed NERC to resubmit this aspect of its proposal with additional support in order to satisfy FERC's concerns.  NERC is expected to make its compliance filing addressing FERC’s concerns by mid-July.

If you have any questions, please feel free to contact us.