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NCAA Again Caught Up In Student Athlete Compensation Issue: Former University of Houston Soccer Player Brings FLSA Suit for Compensation


Early last week, a former University of Houston soccer player filed a lawsuit on behalf of herself and Division I student athletes against the NCAA and all NCAA Division I member schools.  (Yes, that includes even my own alma matter...I will let you guess which one).  

The plaintiff alleged that the University of Houston violated the Fair Labor Standards Act ("FLSA") as she was an uncompensated student athlete and should have been classified as a temporary employee.  Note, if she had been classified as a temporary employee, she would have been entitled to receive compensation.  In essence, the lawsuit argues that students in work study programs (such as serving as ushers at sporting events, working at the library, washing dishes at the food halls, etc.) perform non-academic functions for the benefit of the NCAA and the schools.  As a result, these work study participants meet the criteria to be classified as part time temporary employees and therefore receive compensation.  The argument follows that since student athletes also perform non-academic functions, the student athletes are therefore part time temporary employees and subsequently entitled to be compensated by the school as required by the FLSA.  

Note, the other defendants are included on the grounds that they all conspired to set up a system where these student athletes are uncompensated.  Logical argument to make, as Division I schools do not compensate their student athletes. 

As for the issue of whether scholarships are "compensation, the lawsuit makes the argument that scholarships that are awarded to student athletes are not compensation and therefore not applicable for several reasons.  First, many scholarships are treated as grants and are not offered to every athlete.  As well, scholarships are often intended to defray the costs of attending school rather than be used solely as the student athlete chooses. 

Readers of the blog are aware of attempts by the Northwestern University football team to unionize earlier this year.  This is another example of student athletes attempting to distinguish themselves as not just students, but athletes entitled to compensation for their work.  Will it pay off?  I do not know.  But this will certainly not be the last time we hear about this type of issue.
 

A copy of the lawsuit can be found here:  http://ftpcontent2.worldnow.com/wthr/pdf/ncaalawsuit.pdf

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