3rd Circuit opens door to employee status for college athletes under FLSA

On July 11, 2024, the U.S. Court of Appeals for the 3rd Circuit held that college athletes may be considered employees under the Fair Labor Standards Act (FLSA). College athletes have historically been classified as “amateurs” rather than “employees” of the National Collegiate Athletic Association (NCAA) or their universities. However, in recent years, attitudes about the amateur status of student athletes have begun to change. The 3rd Circuit’s recent decision reflects the evolving perception that student athletes may be deemed employees and accordingly entitled to the legal protections associated with employment.

Student athletes argue for minimum wage

In 2019, several athletes at NCAA Division I (D-1) member schools filed a complaint against the NCAA and their member universities, arguing they were entitled to federal minimum wage compensation under the FLSA for the time they spent representing their schools as athletes. The NCAA and universities asked the court to dismiss the claim, asserting that student athletes are—and have historically been considered—“amateurs,” not employees entitled to FLSA protections.

The district court denied the request to dismiss, determining the athletes had sufficiently pled facts under a multifactor balancing test that might allow them to be classified as employees under the FLSA.