💬 Discussion

Should college athletes be considered employees?

Monday, Dec 19, 2022

Images: NY Times

From NIL rules to the transfer portal, college sports have been going through some ch-ch-ch-ch-ch-changes. And like that shy kid from high school in the midst of an adulthood glow-up, there could be more coming down the pike.

On Thursday, the National Labor Relations Board announced it’s supporting a lawsuit against the University of Southern California, the Pac-12 conference, and the NCAA over unfair labor practices.

To put it simply, the NLRB is alleging that USC athletes are joint employees of these three groups. Meaning they should be entitled to labor rights, including minimum wage, overtime, and unionization.

🤔 Why it’s a big deal: While the NLRB only has jurisdiction over private institutions – which make up more than 40% of all universities in America – a decision to classify athletes at those schools as employees would impact a wide range of issues, including:

  • Private colleges and universities could lose their Section 501(c)(3) designation, which allows charitable gifts to be deemed tax write-offs and grants schools other tax benefits.
  • Scholarships could be considered taxable income for athletes, and families would have to navigate the tax implications of their child no longer being a dependent.
  • Student-athletes could also become eligible for worker's compensation for injuries.

⚖️ The arguments: The NLRB's argument is basically: if it walks and talks like an employee, it’s probably an employee. In a September 2021 legal opinion, the board’s top lawyer asserted that college athletes solidly fit the definition, since they participate in athletic activities strictly under their schools’ control that generate profits for the institutions.

  • On the flip side, the NCAA, athletic conferences, and schools are arguing that athletes becoming employees would lead to unwanted changes in college athletics, including coaches firing players for poor performance and schools forgoing support for sports that don’t generate a profit.

👀 Looking ahead… The NLRB’s announcement kicks off a legal process that’s expected to take months or years to fully resolve.

📊 Flash poll: Do you think college athletes should be classified as employees?

Yes

Only if their sports program generates a net profit

No

Unsure/other

See a 360° view of what the media is saying →

Sprinkles from those who think student-athletes should be employees

  • Some commentators argue that college athletes should only be considered employees if they play at programs that bring in a significant amount of revenue compared to the school’s expenses.
  • Others contend that the demands and responsibilities of a college athlete are so high that it seems ridiculous to classify what they’re doing as something other than work.

Sprinkles from those who don’t think student-athletes should be employees

  • Some commentators argue that student athletes shouldn’t be classified as employees since it would open Pandora’s Box and allow schools to eliminate sports that don’t turn a profit.
  • Others contend that student-athletes are already being compensated for playing by receiving a scholarship to attend college, which carries a large value on its own.
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