US appeals court says some NCAA athletes may qualify as employees under federal wage-and-hour laws

PHILADELPHIA (AP) — College athletes whose efforts primarily benefit their schools can qualify as employees eligible for pay under federal wage-and-hour laws, a U.S. appeals court ruled Thursday. The decision was handed down in a blow to the NCAA.

court, in latest challenge Regarding the NCAA’s long-standing perception of “amateurism” in college sports, stated that a test should be developed to distinguish between students who play college sports for recreation and those whose efforts are ” Exceeds legal limits in action.”

US Circuit Judge L. Felipe Restrepo wrote, “With the most obvious indicators of professional athletes, playing sports can certainly be compensable work.” “Ultimately, the test is whether the cumulative circumstances of the relationship between the athlete and the college or NCAA reveal an economic reality that is that of an employee-employer.”

A colleague, while agreeing, questioned the difficulty of such a process, given that approximately 200,000 students compete on approximately 6,700 Division I teams. The NCAA hoped it would. case dismissedBut instead it will go back to the trial judge for fact finding.

The decision follows a 2021 Supreme Court decision that caused the NCAA to amend its rules to limit athletes from profiting from their name, image and likeness. In May, the NCAA announced approximately $2.8 billion revenue-sharing plan This could provide millions of dollars directly to athletes by next year.

Division I athletes and former athletes in Philadelphia are demanding more modest hourly wages similar to those earned by their peers in work-study programs. He argues that colleges are violating fair labor practices by failing to pay him for the time he devotes to his sports, which he says can average 30 or more hours per week.

Paul McDonald, the attorney representing the plaintiffs, has suggested that athletes could earn $2,000 per month or $10,000 per year for attending NCAA games. He said that many students need money for daily expenses.

“The notion that college athletes can’t be both students and employees is not accurate when you have student employees on campus,” McDonald said Thursday. “It is beyond belief, the idea that athletes would not meet the same standards as employees.”

The Indianapolis-based NCAA asked the appeals court to stop hearing the case after a district judge refused to dismiss the case.

The defendants include the NCAA and member schools including Duke University, Villanova University and the University of Oregon.

The NCAA said in a statement that it is expanding key benefits for athletes, from health care to career preparation, and wants to help schools offer more direct financial benefits to their athletes.

However, it noted students’ concerns that the employment model “could harm their experiences and unnecessarily lead to the loss of opportunities for women’s sports, the Olympic Games, and countless student-athletes at the HBCU and Division II and Division III levels” ” The statement was issued by NCAA spokesperson Meghan Durham Wright.

Unanimous Supreme Court decision Which gave rise to the zero payment, it removed restrictions on college compensation beyond full-ride scholarships. Schools recruiting top athletes can now offer thousands of dollars in education-related benefits such as study abroad programs, computers, and graduate scholarships.

Justice Brett Kavanaugh concurred, writing, “Traditions alone cannot justify the NCAA’s decision to create a massive money-raising enterprise on the backs of student athletes who are not fairly compensated.” “The NCAA is not above the law.”

But that case did not resolve whether college athletes are employees entitled to direct pay — the key issue before the 3rd U.S. Circuit Court panel.

Baylor University President Linda Livingstone, speaking at the NCAA conference last year, said the model would turn coaches into bosses of their players.

“Turning student-athletes into employees would have a sweeping, staggering and potentially devastating impact on college sports,” said Livingstone, chair of the NCAA Board of Governors. “We need Congress to reaffirm the unique relationship student-athletes have with their universities.”

But the relationship has faced increasing scrutiny.

In 2021, a top lawyer for the National Labor Relations Board said in a memo that College athletes should be treated as school employees,

and players have taken to social media Arguing for a cut of some of the millions of dollars that NCAA schools make on sports, including a campaign on the eve of the 2021 NCAA basketball tournament that ran the hashtag #NotNCAAProperty.

The NCAA compared athletes in its conference to students who perform in theater groups, orchestras and other campus activities without pay.

McDonald stated that these types of campus groups are student led, while athletes’ time is controlled by their coaches in a manner similar to employment.

“The most controlled kids on any campus are student-athletes,” he said earlier this year.

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This story has been corrected to show that Baylor University President Linda Livingstone’s quoted remarks at the NCAA convention occurred last year, not this year. The spelling of Livingstone’s last name has also been corrected.