US Appeals Court Says Some NCAA Athletes May Qualify as Employees Under Federal Wage-and-Hour Laws

PHILADELPHIA—College athletes whose efforts primarily benefit their schools may qualify as employees deserving of pay under federal wage-and-hour laws, a U.S. appeals court ruled in a setback to the NCAA. The court, in the latest challenge to the NCAA’s long-held notion of “amateurism” in college sports, said on July 11 that a test should be developed to differentiate between students who play college sports for fun and those whose effort “crosses the legal line into work.” “With professional athletes as the clearest indicators, playing sports can certainly constitute compensable work,” U.S. Circuit Judge L. Felipe Restrepo wrote. “Ultimately, the touchstone remains whether the cumulative circumstances of the relationship between the athlete and college or NCAA reveal an economic reality that is that of an employee-employer.”...