Matthew Bolewitz • March 16, 2022

Make sure you have your ducks in a row!

Business Alerts: It’s Almost Internship Season



It is that time of year where businesses start to make plans and define their goals for the Spring and Summer months. A common question for our law firm is whether a business should hire an intern – and more specifically, does the business need to pay that intern. 


Our firm understands that when the economy is down or highly unpredictable, businesses will want to find ways to cut expenses – which may include exploring an unpaid internship program. It is a common misconception that determining whether to pay interns is in the sole discretion of the business owner. Instead, businesses must comply with the U.S. Department of Labor and federal standards regarding internships. Failure to do sure may result in potential liability and penalties for unpaid wages as well as liability for unpaid employment-related taxes for misclassifying an intern and not paying them wages.  Therefore, business owners should proceed with extreme caution.


The Test: Should an Intern be Paid?


Although every jurisdiction will vary in its analysis; however, a strong baseline for any business when considering an internship program is to review and consider the “Glatt Test.” In 2018, the U.S. Department of Labor endorsed a non-exhaustive seven-factor test to analyze whether an intern is entitled to compensation. These factors include:


1.    Do the intern and the employer clearly understand that there is no expectation of compensation?  Any promise of compensation, express or implied, suggests that the intern is an employee—and vice versa.


2.    Is the training in the internship program similar to that which would be given in an educational environment?


3.    Is the internship tied to the intern's formal education program by integrated coursework or the receipt of academic credit?


4.    Does the internship program accommodate the intern's academic commitments by corresponding to the academic calendar?


5.    Is the internship limited to the period in which the internship provides the intern with beneficial learning?


6.    Does the intern's work complement, rather than displace, the work of paid employees while providing significant educational benefits to the intern?


7.    Do the intern and the employer understand that the internship is conducted without entitlement to a paid job at the conclusion of the internship.


Glatt v. Fox Searchlight Pictures, Inc., 791 F.3d 376, 384 (2d Cir. 2015).

It is important to remember that this decision requires a balance of all the circumstances. No single factor will be dispositive to conclude whether an intern should be paid – therefore, every factor should be taken into consideration. For example, factor #2 requires businesses to think about the educational value that their internship provides. Is such position commensurate with the training that the intern would receive at their educational institution? If not, then such an internship would weigh towards a paid position. Factor #6 requires businesses to assess whether an intern’s duties is designed to replace the work performed by paid employees, thereby allowing the business to reduce the number of employees needed. If so, that would again lean towards a paid position.


After review of the seven-factor test, if a business decides that their internship would qualify for an unpaid position, the business should enter into a written agreement signed by both the business and the unpaid intern. Such an agreement would reinforce the legal requirements above and clarify the general expectations for the position. 


For assistance or more information, please contact Matthew Bolewitz, Senior Counsel at Cozza Law Group at (724) 858-8742 or mbolewitz@cozzalaw.com.



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How Business Litigation Protects Companies From Costly Disputes

By Rocco Cozza • April 19, 2026
How Business Litigation Protects Companies From Costly Disputes Although there are many costs involved in doing business, disputes can take a particularly high toll on a company's finances. These disputes might involve contract breaches, copyright violations, premises liability lawsuits, allegations of fraud, and much more. The obvious strategy is to avoid these disputes at all costs. How does business litigation fit into this equation? Can a company use business litigation to strategically protect itself from disputes? These are questions you might want to explore with an experienced business litigation lawyer in Pittsburgh . Business Litigation Strategies Are Often Preventive in Nature Many business litigation strategies are preventative in nature. In other words, companies take effective, early legal steps to eliminate the chances of disputes and legal action at a later date. One example of this is an effective business contract. When drafted properly, a business contract leaves little room for litigation or any other disputes. Many contracts contain arbitration or mediation clauses. These clauses force parties toward private negotiations instead of the courtroom floor. This private “alternative dispute resolution” (ADR) process is inherently cheaper, faster, and more private than litigation. Once a dispute reaches the courtroom, companies must pay much higher legal fees. They also face longer timelines. One of the biggest downsides of litigation for companies is its public nature. Many companies desperately need to keep sensitive information out of the public eye, whether that includes baseless allegations, copyrighted material, trade secrets, or more. Private negotiations can be so quick that they can hardly be called “disputes,” and issues may be resolved in a matter of weeks. In an ideal world, these disputes never even happen in the first place. A strong contract lays out clear responsibilities and privileges for each party, leaving little room for misinterpretation. Another obvious way to avoid business litigation is by choosing appropriate business partners. Another preventative business litigation strategy involves liability waivers. Although these waivers are not as effective as some company leaders assume, they can nonetheless prevent many needless or frivolous lawsuits. Liability waivers are not appropriate or possible in all industries, but they could be worth considering for businesses that welcome large numbers of patrons onto their premises. Business Litigation Strategies May Involve Regulatory Compliance Sometimes, the biggest legal threat to a business is not a partner or a customer, but rather the government. Regulatory compliance is an incredibly important business litigation strategy, and company leaders should consider consulting with lawyers who understand the specific regulations and laws that pertain to their industries. For example, a company that deals with industrial waste or chemicals may need to become highly familiar with the environmental laws. Generally speaking, these laws become more restrictive each year. Company leaders may need to keep a close eye on regulatory changes to ensure compliance. A company in another industry might deal with a substantial number of employees. If this is the case, the company might need to pay close attention to labor laws, discrimination laws, religious rights, and many other factors that can lead to employment lawsuits. Poaching is another issue that could be concerning, as are non-compete clauses. An experienced business litigation law firm may be able to help companies draft policies and contracts that drastically limit the number of employment-based legal issues in the future. For example, a company might have to follow strict guidelines if it wants to create enforceable non-compete clauses in Pennsylvania. Organized Corporate Governance Can Reduce Litigation and Disputes Many business disputes stem from poor, disorganized corporate governance. When the working relationship between shareholders, partners, and the executive suite begins to fall apart, disputes are inevitable. Effective shareholder agreements and organized record-keeping can go a long way in making sure everyone is on the same page. Business Litigation Attorneys Can Help With Risk Assessment Sometimes, dispute prevention starts with risk assessment. If company leaders become aware of a potential legal risk, they might consider a different approach or business strategy. For example, a company might consider entering into a new contract with a supplier. A business litigation attorney may be able to conduct effective legal research into the new supplier to determine the legal risk associated with a new contract. Perhaps the new supplier tends to get into lawsuits with its partners. Maybe the company is already in the process of being sued. Whatever the case may be, an experienced lawyer can help company leaders assess the legal risks associated with certain actions before moving forward. Most Disputes Never Reach the Trial Stage Since parties usually understand the downsides of going to trial, they tend to settle their disputes outside of court. This means that disputes rarely escalate into trials. However, this does not necessarily mean that a privately settled dispute is not costly for a company. Instead, a settlement could be disastrous for a company. This is why it makes sense to negotiate effectively, even if you’re dealing with someone who agrees to mediation or arbitration. Business litigation attorneys are often effective negotiators, and they can guide both parties toward mutually beneficial outcomes. If the goal is to reduce the cost of a dispute, a lawyer can push back with effective counterpoints and counteroffers. If the goal is to gain as large a settlement as possible, your lawyer can advocate on your behalf and reject lowball offers. Can a Business Litigation Lawyer in Pittsburgh Help My Company? Whether you are facing a dispute or you simply want to avoid the possibility of legal action in the future, a business litigation lawyer in Pittsburgh may be able to help. These lawyers can help your company take preventative steps, such as creating effective contracts or liability waivers. A business litigation attorney can also help you if your company is already facing a serious dispute or lawsuit. Consider reaching out to Cozza Law Group, PLLC, at (412) 790-2789 to learn more about your next potential steps. You can also find us online .