A recent legal proceeding before an Administrative Law Judge in Los Angeles could potentially reshape traditional models of collegiate athletics. The National Labor Relations Board (NLRB) has lodged a complaint against the University of Southern California, the Pac-12 Conference, and the National Collegiate Athletic Association (NCAA), alleging that they have been misclassifying athletes under scholarship as “student-athletes” rather than “employees.”
The charges stem from an analytical memorandum, issued by the NLRB’s General Counsel on September 29, 2021, which supports the NLRB’s move to recognize college athletes as employees. According to the NLRB, the scholarships received by college athletes for their services, i.e., participation in sports, are a form of compensation. This point, supported by the strict rules and regulations imposed on these athletes by universities, conferences, and the NCAA, serves as the NLRB’s argument for their “employee” status.
The Implications of this shift in classification are significant. As employees, college athletes would become eligible for union representation, gain the right to strike, access to unemployment and workers’ compensation benefits, protection from workplace discrimination, disability benefits, and other perks that could be procured via collective bargaining.
The NLRB’s complaint also hinges on the argument that the University of Southern California, the Pac-12 Conference, and the NCAA are “joint employers” that exercise substantial control over the athletes’ lives. Such a decision could extend the application of NLRB’s rules and the implications of the National Labor Relations Act to athletes at public schools too.
In parallel, a related case involving ex-Division I athletes, currently before the US Court of Appeals for the Third Circuit, could set an equally influential precedent. Here, the athletes argue for classification as employees under the Federal Fair Labor Standards Act and state labor laws to become eligible for minimum wages and overtime pay.
Alongside these potential benefits, “employee” classification also raises several concerns around pay equity between revenue and non-revenue sports, implications on Title IX requirements, and potential budget strains on colleges and universities. The matter is multidimensional, and we’ll be keeping an eye on how it progresses.
Currently, the NCAA, athletic conferences, and schools are looking to Congress for intervention, but the complexity of the situation and the current state of affairs in Washington make it unlikely for immediate legislative action.
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