Athletes as employees

[LawoftheWest]

I saw where the general counsel of the NLRB has asserted that student athletes at colleges are employees, entitled to the protections of the labor laws.

I am not a labor lawyer and do not understand the implications. For example, does that mean they are entitled to overtime pay? However, it does mean they have the right to vote on forming a labor union.

So, if upheld, is this scary, or just a blip? Any answers or insights from someone knowledgeable about labor law, please.

[Versus75]

… to pay income tax, FICA, Medicare tax, etc. on the value of their scholarship, housing, meals, trips to exotic locales such as Starkville, Mississippi, etc.

[OldDude]

No insight on this, LawoftheWest. It does present one more factor as to why many on this board have stated their belief that the concept of amateur sports played by student-athletes will soon be a thing of the past.

I do wonder about that dystopian athletic future when the Alabamas, USCs and Ohio States of the country realize that they are now competing for athletes' salaries and perks, as well as for revenue and media time with the NFL.
When successful local businessman who used to give generously, and with no restrictions, to the school now gives instead to stud QB.

One cool possibility : Harvard with a huge number of wealthy alums decides to win a National title and uses NIL to bring in about 20 super stars........just a thought.

[FayetteDore]

IF they could fully meet Harvard's admission standards, I think that would be great. I think.

[commadore]

… to pay income tax, FICA, Medicare tax, etc. on the value of their scholarship, housing, meals, trips to exotic locales such as Starkville, Mississippi, etc.

Absolutely correct. If a regular worker has to pay tax on the value of the personal use of a company car, or a prize or award, or reimbursed entertainment expense while on a trip, then a scholarship would certainly be income. If so, we are doomed. Why go to VU and get taxed on $70,000 when you can go to Memphis and it be $25,000.
Will need an act of congress to fix that.

[OldDude]

… to pay income tax, FICA, Medicare tax, etc. on the value of their scholarship, housing, meals, trips to exotic locales such as Starkville, Mississippi, etc.

Absolutely correct. If a regular worker has to pay tax on the value of the personal use of a company car, or a prize or award, or reimbursed entertainment expense while on a trip, then a scholarship would certainly be income. If so, we are doomed. Why go to VU and get taxed on $70,000 when you can go to Memphis and it be $25,000.
Will need an act of congress to fix that.

And, if athletes are taxed on the value of tuition, room ,etc, then regular students would also likely be liable as well.

[thefan]

… to pay income tax, FICA, Medicare tax, etc. on the value of their scholarship, housing, meals, trips to exotic locales such as Starkville, Mississippi, etc.

You nailed it. The trips, accommodations with travel would be business expenses.They should also be audited for academic achievement once a year as many businesses are audited and if minimum collegiate standards aren't met then kick the employees back out into the real world! College sports is just another name for the minor leagues but players, coaches, and fans love to pretend! How about a dress code? When UT bailed out Peyton, why was not the payoff taxable income to Manning?

[Johnmn555]

I'd like to see how many of these 19 year olds, who don't know a 1040 or 1099 from a miniature schnauzer, will be paying income and self employment taxes on what they get through NIL. They'll just ignore those 1099s that are issued to them as independent contractors.

[commadore]

… to pay income tax, FICA, Medicare tax, etc. on the value of their scholarship, housing, meals, trips to exotic locales such as Starkville, Mississippi, etc.

Absolutely correct. If a regular worker has to pay tax on the value of the personal use of a company car, or a prize or award, or reimbursed entertainment expense while on a trip, then a scholarship would certainly be income. If so, we are doomed. Why go to VU and get taxed on $70,000 when you can go to Memphis and it be $25,000.
Will need an act of congress to fix that.

And, if athletes are taxed on the value of tuition, room ,etc, then regular students would also likely be liable as well.

Not necessarily. The FB players are providing a service and getting compensated for it. Regular students are not, generally.

[NWOHDore]

"Regular" students, like graduate students on assistantship or fellowship, are considered employees and are taxed on their graduate stipends. Typically, scholarships and fee waivers that are applied directly to cost of attendance (tuition, fees, etc.) are not taxable, so I would assume it would work the same way for athletes, should it ever come to be. The same is true for undergraduates who work campus jobs. Even students who receive federal work study as part of their financial aid packages and work campus jobs earn income that is taxable.

[vujoe]

The demise of collegiate sports is in our near future!

[thefan]

Absolutely correct. If a regular worker has to pay tax on the value of the personal use of a company car, or a prize or award, or reimbursed entertainment expense while on a trip, then a scholarship would certainly be income. If so, we are doomed. Why go to VU and get taxed on $70,000 when you can go to Memphis and it be $25,000.
Will need an act of congress to fix that.

And, if athletes are taxed on the value of tuition, room ,etc, then regular students would also likely be liable as well.

Not necessarily. The FB players are providing a service and getting compensated for it. Regular students are not, generally.

The education used to be the compensation but most likely are getting nothing close to an education but probably worthless pieces of paper called "diplomas"!