A federal court has approved a $2.8 billion settlement between the National Collegiate Athletic Association (also known as the NCAA) and a set of college athletes over alleged employment violations. This settlement means that, for the first time, student athletes playing for the NCAA will be compensated like employees, similarly to other professional athletes. The settlement will end all three ongoing cases against the NCAA, as well as compensate previous student athletes for alleged past damages.
What Were These Lawsuits About?
A collection of student athletes sued the NCAA over alleged violations of the Fair Labor Standards Act (FLSA), the primary federal law that governs compensation for employees. According to these lawsuits, the student athletes were forced to perform work similar to professional athletes without compensation. They argued that they should be entitled to compensation appropriate to the work they do, especially considering that they would be making much more money if they were playing in a professional league.
What Was The Legal Issue Being Decided?
The primary question was whether or not these student athletes were entitled to compensation under the FLSA. The athletes themselves argued that they should be compensated for their work, given that they often put in long hours and take on significant risk of injury to play for their schools. Meanwhile, the NCAA argued that they should not be considered paid workers, especially considering they were receiving a form of compensation through their athletic scholarships.
What Does the Settlement Say?
Under the $2.8 billion settlement, college athletes will now be compensated for the time they spent playing for their schools. In addition, at least some of the athletes who previously played for their schools will receive compensation for the time they played. In exchange, all claims against the NCAA will be dismissed, and the organization will not need to admit any wrongdoing.
Why Does This Matter?
This potentially monumental settlement could substantially change the face of college sports. It is a massive, multi-billion dollar a year business, but until now its athletes never saw any financial benefit other than their scholarships. Now, they will be paid commensurate with the time and work they put in, and may receive other protections such as sick leave and other employee benefits.
If you have an employment issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey employment lawyer who has considerable experience in handling the many aspects of labor and employment law. To schedule a consultation with New York City/Long Island/Westchester employment lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.
