Comcast-owned NBCUniversal is shelling out $6.4 million to settle a class action suit filed in July 2013 by nearly 9,000 unpaid interns.

Charges brought against the media unit claims that NBCUniversal violated the Fair Labor Standards Act, as well as state laws in California, Connecticut and New York by classifying the claimants under "non-employee interns", while having them do actual employee work.

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NBCUniversal asserts in court documents that, despite agreeing to settle, the company is denying allegations and does not admit the violation. It can be considered that NBCUniversal decided to avoid additional expense and delay that might be required if the matter carries on longer.

The lawsuit was filed by former Saturday Night Live intern Monet Eliastam, claiming she worked 25+ hour weeks on set in 2012. Other names in the proposed class action included Alexander Vainer, Jamaal Brown, Nicole Klepper, Rheana Behuniak and Samantha Kurlander.

Once the court approves, the breakdown of the settlement will be as follows: $1.18 million will go to the plaintiff's lawyers; $10,000 as service payment to Eliastam; $5,000 to Vainer and Behuniak; $2,000 to Brown, Klepper and Kurlander. More than 8,000 former interns will also receive $505 before taxes.

Students and fresh graduates have long considered unpaid internships as door-openers to their desired industries. Companies offer exposure, experience and training to interns who can afford to work for free. But in the last few years, the practice has come under attack.

In a similar case filed against Fox Searchlight in 2011, the judge ruled in favor of Eric Glatt and Alexander Footman, production interns for the Darren Aronofsky film, Black Swan. Glatt and Footman said they undertook responsibilities usually relegated to paid employees. The judge's ruling stated that unpaid internships should only be allowed in very limited circumstances.

Hearst Magazines, which publishes Harper's Bazaar, and Elite Model Management also faced class action suits in the past.

TagsNBCUniversal intern, Monet Eliastam, Unpaid internships, Fox Searchlight lawsuit, NBCUniversal lawsuit, Saturday Night Live, NBCUniversal settlement