Skip to main content

Upon Further Review: (Some) Unpaid Volunteers For Super Bowl Will Get Paid


With the string of class action suits that have started to become more commonplace in the courts regarding unpaid internships, this is an interesting development on how the NFL is handling the issue.  Originally, the NFL had approximately 13,500 volunteers working the Super Bowl that would not get paid for their work.  However, the NFL reversed course and held that about 1,500 of these volunteers will now get paid.  Unsurprisingly, the NFL is now requiring the remaining volunteers who will not receive compensation to sign a waiver stating that they will not sue, join a class action, and agreeing to arbitrate if they do so. 

Note that under the Fair Labor Standards Act ("FLSA"), a person that is an "employee" is entitled to receive a wage for their work done.  The Department of Labor has previously stated that under the FLSA, employees may not volunteer services to for profit private sector employers.  However, individuals who volunteer or donate their services, usually on a part-time basis, for public service, religious or humanitarian objectives, not as employees and without contemplation of pay, are not considered employees of the religious, charitable or similar non profit organizations that receive their service.  

Seems easy enough.  The NFL is a big money making, for profit operation that should be on the hook for paying all volunteers for the Super Bowl, right?  Wrong.  After a bit of research, it appears the NFL is a not for profit company.  Yes, you read that right.  (Note that there is a push in Congress now to revoke the non profit status).  The $9 billion in annual revenue the NFL takes in is distributed to teams, which is then subject to taxation.  

While the NFL is a non profit company, they might be able to sidestep any requirements that they pay all volunteers.  Outrage?  Sure.  Debate within Congress?  In progress. Lawsuits?  Possibly, but remember it will likely go to arbitration, per the waiver.  Ire among the everyday citizen?  Certainly.  An online petition to strip the NFL of the tax exempt status has about a quarter of a million signatures.  With that being said, the unpaid volunteers are not necessarily going home empty handed.  For those unpaid volunteers who still decide to show up and work, they will get to keep their uniforms if they work a required period of time.  The only thing better than a paycheck for your work is the ability to keep the clothes you had to wear to volunteer.  And what about game tickets?  Ha, nice try...


Article discussing the development:  http://www.nj.com/super-bowl/index.ssf/2013/11/some_super_bowl_volunteers_to_get_paid_report_says.html

Comments

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...

New Jersey Governor Chris Christie Vetoes Minimum Wage Hike

A few months ago, readers might remember that I pointed out that the New Jersey Legislature had voted to approve a minimum wage hike in the state .  Under the approved legislation, the minimum wage rate would rise to $10.10/hour in the next year and at least $15/hour over the next five.  (The current minimum wage rate in the state is $8.38/hour).  In that article, I had noted that the bill was then going to go before Governor Chris Christie for his approval or veto. As I had suggested previously, I thought that the Governor would likely veto the bill based upon his prior actions and comments on similar legislation.  Well, a few days ago, Governor Christie did just that and vetoed the bill on the grounds that it "would trigger an escalation of wages that will make doing business in New Jersey unfathomable."  Pointing to the increase in hourly minimum wage rates, the Governor referred to the bill as a "really radical increase."  (It is interesting to c...