Congress Introduces Legislation on Employee Classification of Student-Athletes – CUPA-HR

NLRB Issues Memo Outlining Higher Ed Institutions’ Disclosure Obligations under NLRA and FERPA - CUPA-HR

by CUPA-HR | June 18, 2024

On June 13, the House Education and Workforce Committee voted to advance H.R. 8534, the Protecting Student Athletes’ Economic Freedom Act. The bill would prohibit student-athletes from being classified as employees under federal and state labor laws and regulations due to their participation in intercollegiate athletics.

The bill was introduced on May 23 by Rep. Bob Good (R-VA) and 10 House Republicans. If enacted, the bill would prohibit student-athletes from being classified as employees at institutions of higher education, athletic conferences or athletic associations (such as the NCAA). In effect, the legislation would prohibit student-athletes from being classified as employees under federal labor laws, such as the Fair Labor Standards Act (FLSA) and National Labor Relations Act (NLRA), as well as state laws and regulations determining employment classification.

Throughout the Biden administration’s first term, the National Labor Relations Board (NLRB) has issued significant guidance and decisions with respect to the classification of student-athletes as employees. In September 2021, the NLRB’s general counsel issued a memorandum asserting the agency’s position that student-athletes are considered employees under the NLRA. The memorandum was followed by an NLRB complaint filed against the University of Southern California, the Pac-12 Conference and the NCAA for allegedly misclassifying USC’s men’s football and men’s and women’s basketball players as student-athletes rather than employees. Additionally, in March 2024, the Dartmouth College men’s basketball team voted in favor of joining the Service Employees International Union, after a regional NLRB director determined that players on the team are employees under the NLRA using the board’s general counsel memorandum.

The bill passed out of committee by a partisan vote of 23-16, only gaining support from Republicans on the committee. The bill now awaits a full House vote, where Republicans can pass the bill with a simple majority. The fate of the bill is more uncertain in the Senate, as it is unlikely that it will gain enough support from Democrats to bypass the 60-vote filibuster. CUPA-HR will keep members apprised of any updates relating to this bill and employee classification of student-athletes generally.



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