Dawson v. National Collegiate Athletic Association, No. 17-15973 (9th Cir. 2019)
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The Ninth Circuit affirmed the dismissal of an action brought by plaintiff, a Division 1 college football player, alleging that he was an employee of the NCAA and the PAC-12 Conference within the meaning of the Fair Labor Standards Act and California labor law.
The panel held that the district court properly concluded that Division I FBS Football Players are not employees of the NCAA or PAC-12 as a matter of federal law. In this case, the economic reality of the relationship between the NCAA/PAC-12 and student-athletes does not reflect an employment relationship. The panel held that, within the analytical framework established by the Supreme Court, the NCAA and PAC-12 are regulatory bodies, not employers of student-athletes under the FLSA. The panel also held that the district court correctly dismissed plaintiff's California law claims for failure to state a claim. Under California law, student-athletes are generally deemed not to be employees of their schools. Furthermore, there was no authority that supported an inference that, even though the student-athletes are not considered to be employees of their schools under California law, the NCAA and PAC-12 can nevertheless be held to be "joint employers" with the students' schools.
Court Description: Labor Law. The panel affirmed the district court’s dismissal of a Division I college football player’s claim that he was an employee of the National Collegiate Athletic Association and the PAC-12 Conference within the meaning of the Fair Labor Standards Act and California labor law and thus entitled to minimum wage and overtime pay. The panel held that Division I football players were not employees of the NCAA or PAC-12 as a matter of federal law because the economic reality of the relationship between the NCAA/PAC-12 and student-athletes did not reflect an employment relationship. The panel concluded that NCAA regulations providing a limitation on scholarships did not create any expectation of compensation; plaintiff could not demonstrate that the NCAA or the PAC-12 had the power to fire or hire him; and there was no evidence that the NCAA rules were conceived or carried out to evade the law. Further, the revenue generated by college sports did not convert the relationship between student-athletes and the NCAA into an employment relationship. Thus, the NCAA and Pac-12 were regulatory bodies, not employers of student-athletes under the Fair Labor Standards Act. The panel also affirmed the district court’s dismissal for failure to state a claim of plaintiff’s California law claims. The panel held that the district court properly relied on a DAWSON V. NCAA 3 legislative exception for student-athletes from workers compensation benefits and the California courts’ interpretation of this exception. The panel held that, under the California Labor Code, student-athletes were not employees of the NCAA/PAC-12.
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