Jul 113 min read

College Athletes Might Be Considered Employees by Law

NCAA Flag — © Kirby Lee/USA TODAY SPORTS

A recent ruling by the Philadelphia-based 3rd U.S. Circuit Court of Appeals has denied the NCAA's motion to throw out a lawsuit brought by a group of Division I college athletes toward the organization and a few Division I institutions. This has perhaps paved the way for college athletes to be considered employees under state and federal law.

Details of the Lawsuit

The lawsuit, originally filed in November 2019, details how student-athletes should be considered as "employees" based on state and federal wage and hour laws. The group seeks unpaid wages to be paid out via back pay and damages sustained while the NCAA profited off their "work."

The lawsuit has gone on for almost five years now, with the back-and-forth between the NCAA and college athletes seemingly favoring the athletes. With this most recent ruling, it might have been the straw that broke the NCAA's back. The NCAA has long since tried to hold up the notion of "amateurism" in college athletics, however, the 3rd Circuit Court has requested a test be administered to determine which sports are played by college-age adults for fun and what cases cross the legal line into "compensable work."

"With professional athletes as the clearest indicators, playing sports can certainly constitute compensable work," U.S. Circuit Judge L. Felipe Restrepo wrote in his opinion. "Ultimately, the touchstone remains whether the cumulative circumstances of the relationship between the athlete and college or NCAA reveal an economic reality that is that of an employee-employer."

There is no set timetable in which this test will be ready for implementation or what the NCAA has planned to do next in order to combat this case further, however, it is predicted that the NCAA will continue fighting for "amateurism" to stay alive in college athletics. Given the comparisons that the NCAA has made to student-led campus groups such as orchestra, club sports and other aspects of campus life, it is easy to see that the NCAA likely will not budge on their stance, though given the "coach-controlled "rather than student-controlled aspect of college athletics, this is the case the group of college athletes is trying to make.

What This Means for College Athletes

While nothing is set in stone yet, given that a test still needs to be implemented and there are major details to still be figured out, this is a major win for college athletes looking to be considered as employees. Ever since the ruling in favor of offering name, image and likeness (NIL) compensation for college athletes, the needle has shifted ever closer in their favor, with the NCAA losing more and more power over both institutions and college athletes by the year. The most recent ruling in the House v. NCAA case has been the biggest step toward the reality of college athletes' direct compensation, but if this rules in the favor of students, it may supersede it.

This being said, once again, there are still a lot of kinks to work out. Things such as salary caps, antitrust laws, collective bargaining, player unionization, and other aspects that average employees and professional athletes have will be involved should this be ruled in favor of college athletes, which poses significant challenges to institutions, conferences and administrators alike. Challenges that seemingly aren't being discussed as of yet, mainly due to having to figure out the revenue-sharing model first and not quite wanting to pull the trigger on "employee" status from many institutional administrators, not just the NCAA.

"We have not discussed a salary cap, I think the (House v. NCAA) settlement provides a crystal-clear future and path forward for our industry, it provides enhanced benefits for our student-athletes and as I said in my comments (before), that's what they want and that's what the (House v. NCAA) settlement delivers," Big 12 Conference Commissioner Brett Yormark explained to media during Big 12 Media Days in Las Vegas this past week.

As of now, it seems like those pushing for more college athlete compensation will have to settle for the revenue-sharing model that will be structured in the near future as well as the NIL models that currently exist, but should this court case fall in the favor of college athletes, it could pose a new, more difficult challenge for college sports.

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