Lori Meadows
The debate over whether student athletes should be paid has been a contentious issue for many years. While the National Collegiate Athletic Association (NCAA), the governing body of college athletics, has long opposed the idea, there have been several developments in recent years that have brought the issue to the forefront. These include a 2021 Supreme Court ruling in NCAA v. Alston, which allowed student-athletes to profit from their name, image, and likeness (NIL) deals, and a $2.7 billion settlement in House v. NCAA, which provided back pay for college athletes who were shut out of NIL deals. In addition, a recent NCAA settlement has paved the way for universities to pay athletes, although the specifics of this remain unclear. As a result of these developments, there have been several legislative attempts to address the issue, including the SCORE Act, which seeks to standardize NIL compensation for student-athletes and prevent them from being considered employees, and the Protecting Student Athletes' Economic Freedom Act, which seeks to prohibit student-athletes from being considered employees of their universities. The House Committee on Education and the Workforce has been at the center of these discussions, with both Republicans and Democrats introducing and advancing bills related to student-athlete compensation and worker protections.
| Characteristics | Values |
|---|---|
| Committee Name | House Committee on Education and the Workforce |
| Committee Chairs | Virginia Foxx, R-N.C. |
| Committee Members | Rep. Lori Trahan, D-Mass. |
| Committee Republicans | Rep. Gus Bilirakis, R-Fla. |
| Committee Democrats | Rep. Shomari Figures, D-Ala. |
| Committee Actions | Passed a bill preventing student-athletes from being considered employees |
| Committee Goals | Protecting student athletes' economic freedom |
| Committee Opposition | House Democrats |
| Committee Support | NCAA, Power 5 conferences |
| Committee Legislation | H.R. 8534, Protecting Student Athletes' Economic Freedom Act |
| Committee Recommendations | Prohibiting student athletes from being classified as employees |
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What You'll Learn
The SCORE Act
Supporters of the Act argue that it will bring much-needed stability, clarity, and transparency to college sports, while also empowering student-athletes and preserving the educational mission of colleges and universities. They believe that a national framework is long overdue and that the Act will protect the long-term viability of college sports. Additionally, it will ensure that student-athletes receive essential benefits to support their education, health, and long-term success.
However, the Act has faced opposition, particularly from House Democrats, who argue that it will shield the NCAA from future legal challenges while offering athletes little recourse. They also believe that it provides a series of blank checks to college athletic programs without securing any additional protections for college athletes. The Act has also been criticized for banning college athletes from ever having labor and employment protections and for failing to include concrete protections for students.
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Student-athletes as employees
The debate surrounding student-athletes and their employment status has been a contentious issue in the United States for several years. While the National Collegiate Athletic Association (NCAA) has long upheld the "amateur" status of student-athletes, arguing that they are not employees, recent legal developments have challenged this stance.
In 2024, the Third Circuit Court held that NCAA athletes could be considered employees under the Fair Labor Standards Act (FLSA). This decision, known as the Johnson ruling, affirmed that student athletes could be classified as employees if they perform services for another party, primarily for that party's benefit, under their control, and in return for compensation or benefits. This ruling opened the door for student-athletes to seek minimum wage compensation and unionization rights.
However, the House Committee on Education and the Workforce passed a bill, the "Protecting Student Athletes' Economic Freedom Act," which seeks to prevent student-athletes from being considered employees of their universities. This bill, introduced by Representative Bob Good, aims to preserve the amateur status of student-athletes and prevent them from attaining employee rights.
The issue of student-athlete compensation and employment status has also been addressed through the SCORE Act, which stands for Student Compensation and Opportunity through Rights and Endorsements Act. The SCORE Act aims to standardize NIL (Name, Image, and Likeness) deals for student-athletes while protecting the integrity of collegiate athletics. It seeks to provide a consistent national framework that ensures student-athletes receive essential benefits while also preserving the educational focus of colleges and universities.
While the legal battles continue, the tide seems to be turning in favor of recognizing student-athletes as employees, at least in certain circumstances. The economic realities test, which considers the working relationship between the employer and employee, will likely play a crucial role in determining the employment status of student-athletes in the future.
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NCAA and college athlete pay
The issue of NCAA and college athlete pay has been a contentious topic, with recent developments aiming to address this. College athletics are a significant part of American culture, and the debate revolves around whether student-athletes should be considered employees of their universities and receive compensation beyond scholarships.
Historically, the National Collegiate Athletic Association (NCAA) has resisted efforts to pay college athletes, citing "'amateurism.'" The NCAA has long maintained that student-athletes are not employees and are instead students who participate in sports as part of their educational experience. However, critics argue that college athletes generate significant revenue for their universities and should be fairly compensated.
In 2021, the Supreme Court's decision in NCAA v. Alston marked a turning point. The Court rejected the NCAA's "amateurism" argument and allowed student-athletes to profit from their name, image, and likeness (NIL) deals. This decision opened the door for student-athletes to receive compensation beyond scholarships, but it did not address the question of universities directly paying salaries to athletes.
The House Committee on Education and the Workforce has advanced legislation, such as the "Protecting Student Athletes' Economic Freedom Act," seeking to prevent student-athletes from being classified as employees. They argue that student-athletes attend institutions for education and athletic excellence, not to become employees. However, this stance has faced opposition, with House and Senate Democrats promoting bills that support college athletes' right to unionize and collectively bargain.
The matter of athlete compensation and employee status remains unresolved, with ongoing legal battles and proposed settlements. The House v. NCAA class-action lawsuit resulted in a $2.77 billion settlement, addressing claims dating back to 2016. Additionally, the proposed agreement includes allowing Power 5 schools to allocate up to $20 million annually for their student-athletes. While these developments address compensation, the NCAA continues to lobby Congress to prevent student-athletes from gaining employee status.
The CMT Subcommittee has also advanced the SCORE Act (H.R. 4312), aiming to standardize NIL compensation for student-athletes while preserving the educational mission of colleges. This legislation seeks to provide a consistent national framework, ensuring compliance with fair rules and reducing the threat of lawsuits that could impact collegiate athletic programs.
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NIL deals and pay-for-play
The debate around whether college athletes should be paid has been ongoing for years. While athletes have demanded compensation and coaches have been caught trying to incentivize players to join their schools with gifts or cash, the debate has never resulted in any concrete action—until recently.
Name, Image, and Likeness (NIL) deals are a workaround for athletes to get paid without being considered professional athletes. NIL deals allow college athletes to receive financial compensation through the use of their name, image, and likeness in marketing and promotional endeavours. This can include autograph signings, product endorsements, social media posts, and more.
While NIL deals have allowed college athletes to profit, the question of whether these deals constitute pay-for-play has been raised. Some contracts state that athletes are not being paid in exchange for their commitment to the institution or its program. However, a footnote may specify that athletes must remain enrolled and listed on the team's active roster to receive payment, and that payment may be adjusted based on playing time or performance.
Legal experts have questioned whether the argument that these deals are not pay-for-play would hold up in court. They have drawn comparisons to Hollywood, where actors' long-term licensing rights and labour are part of their deals, and courts have considered this an employment arrangement.
The House Committee on Education and the Workforce has passed a bill preventing student-athletes from being considered employees of their universities. This bill, known as the "Protecting Student Athletes' Economic Freedom Act," seeks to prohibit student-athletes from attaining employee status. Critics argue that this bill limits the rights of college athletes and ignores the very real challenges they face, including Title IX issues.
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College athlete unionization
In February 2024, the National Labor Relations Board's Region 1 issued a decision that Dartmouth College's men's basketball team, consisting of 15 student-athletes, could be considered employees with the right to unionize. This decision was based on the region's conclusion that Dartmouth's control over the "work" of the players and the "compensation" they received rendered them employees under the National Labor Relations Act (NLRA).
This ruling by the NLRB's Region 1 is significant because it sets a precedent for college athlete unionization. It effectively reinstates a 2017 document issued by Barack Obama-appointed general counsel Richard Griffin, which was rolled back under Donald Trump. The updated guidance from the NLRB asserts that athletes at private universities are employees and have the right to negotiate and unionize. It also states that it is illegal for schools to retaliate against athletes who organize, and institutions that continue to use the term "student-athlete" could face consequences.
The debate around college athlete unionization has been ongoing for years, with athletes generating significant revenue for their schools without direct compensation. While the NLRB's decision specifically applies to private schools, it could have an impact on public universities as well, as they compete against each other. Additionally, the College Athlete Right to Organize Act, introduced by Senators Bernie Sanders and Chris Murphy, further supports the idea that college athletes are workers with the right to unionize.
Despite the progress, there are still challenges and differing opinions on the matter. The structure of potential unions and the effectiveness of striking as a bargaining tool have been questioned. Additionally, the House Committee on Education and the Workforce passed a bill, the "Protecting Student Athletes' Economic Freedom Act," which seeks to prevent student-athletes from being considered employees of their universities. This bill is supported by the NCAA and the Power 5 conferences, who fear that rising costs associated with employee status will limit their ability to maintain a full array of intercollegiate sports teams.
On the other hand, House and Senate Democrats have promoted bills supporting college athletes' right to unionize and collectively bargain. They argue that Republicans are limiting the rights of college athletes without considering their input. Furthermore, the SCORE Act, a bipartisan piece of legislation, aims to standardize NIL (Name, Image, Likeness) deals for student-athletes while preserving the educational mission of colleges and universities. This act ensures that student-athletes can benefit from NIL opportunities while protecting the broader ecosystem of collegiate athletics and providing nationwide consistency.
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Frequently asked questions
The House Committee on Education and the Workforce deals with matters concerning the payment of student athletes.
The SCORE Act (H.R. 4312) or the Student Compensation and Opportunity through Rights and Endorsements Act is a bipartisan piece of legislation that seeks to standardize NIL (Name, Image, and Likeness) compensation for student-athletes. It also prevents student athletes from being considered employees.
The SCORE Act is currently being debated and its passage in the House and the US Senate is uncertain.
