Category:Employment
Is NIL the Killer or the Key to Classifying Student-Athletes as Employees?
Will name, image, and likeness (NIL) accelerate or hinder student-athletes being classified as employees? NIL refers to a person’s legal right to control how their image is used. For several years, college athletes forfeited these rights when they signed with collegiate sports teams. However, three years ago, NCAA rules changed, allowing athletes to profit off their NIL. Even without NIL deals, an increasing number of student-athletes have sought compensation while playing for universities. Student-athletes have sought compensation ranging from travel expenses to minimum wage. Historically, student-athletes have not been considered employees under labor and employment laws. Recently, courts have been divided on whether athletes receiving compensation should be considered a student or an employee. The addition of NIL rights that allows student-athletes to receive payment might be the factor that will ultimately decide this issue.
Clearing Up the Confusion: Classification of Employees and Independent Contractors
In 2019, the Governor of California signed Assembly Bill 5 (AB 5) into law. This bill sparked a battle in the courts between California’s state attorneys and rideshare giants, Uber and Lyft, who are determined to maintain the independent contractor classification of their workers. However, the new issuance of a DOL rule could change the landscape of this classification battle, not just for rideshare workers, but workers in many industries within the gig economy who could benefit from the new rule.