United States – For the first time, the Philadelphia-based 3rd U.S. Circuit Court of Appeals has come up with a touchstone to identify when a college athletes are employees in federal wage regulations. The court’s decision found that athletes could be deemed employees if they are primarily contributing to the well-being or work of their schools by stipends or other perks.
Effect on the Class Action Against NCAA
This ruling permits a number of former college athletes to moveto a planned class action against the NCAA, their former colleges, to recover their services in sports. This came after a considerable $2.8 million that NCAA paid in May to settle class-action lawsuits for antitrust laws for placing limits on student emoluments, as reported by Reuters.
Recent Developments in College Athlete Rights
Earlier this year, Dartmouth College men’s basketball players made history by voting to unionize, challenging traditional interpretations of athlete rights and compensation within collegiate sports.
Court’s Rejection of NCAA’s Student Status Argument
The 3rd Circuit decisively rejected the NCAA’s claim that college athletes cannot be considered employees due to their student status. Circuit Judge Luis Restrepo criticized this argument as “circular, unpersuasive, and increasingly untrue.”
Future Implications for College Sports and Athlete Compensation
The matter also has implications for athletes’ rights in collegiate sports and compensation for services that they render with reference to the future cases. Still, it remains to be considered how this ruling will affect the on-going discussion of equality and remuneration of college athletes across America.
Surprisingly the NCAA has not made and official comment on the ruling made by the court. In his response, Michael Willemin, the lawyer representing the plaintiffs said he was happy with the decision since it means that the NCAA is not above the law, and that student-athletes can qualify as employees under U. S. employment laws, as reported by Reuters.
While previous state rulings categorized college athletes as non-employees, citing their educational status and sports participation as part of their learning experience, these precedents were set before the U.S. Supreme Court’s 2021 decision declaring unconstitutional the NCAA’s restrictions on athlete compensation.