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Sean 'P Diddy' Combs's Bad Boy Entertainment record label is being sued by a disgruntled former intern.
Rashida Salaam is accusing the company - founded by the rap mogul in 1993 - of violating minimum-wage laws and exploiting her for free labour.
She worked at the firm, home to the hip-hop star's business interests, including his record label, restaurants and a movie production company between January and May 2012.
The 26-year-old, from Brownsville, New York, claimed that during that time she was made to undertake menial tasks such as getting coffee and answering phones and did not receive any payment for her work.
"I know that I was taken advantage of," the unemployed City College graduate told the New York Post. "I basically wanted to take a stand for all interns who work there. You are supposed to get paid for labour you do."
She also claimed that past interns were made to run personal errands for Combs, who is worth an estimated $580m.
"Past interns told me that they wrapped gifts for Diddy and his kids.
"They wrapped gifts for Diddy and decorated his tree at his office. They are happy to be there. It's a big company."
The lawsuit estimated that under federal law more than 500 ex-interns who began working at Bad Boy after August 2007 were eligible to join the class-action claim.
All internships in the "for-profit" private sector in the US are now viewed as a job and employers must pay the minimum wage.
In Britain, an intern's rights to pay depends on their employment status. An employer is only obliged to pay the minimum wage if the intern is classed as a worker and promised a contract of future work.
Student interns, volunteers and those "shadowing" a job are not entitled to payment.
P Diddy and Bad Boy Entertainment have not commented on the allegations.