Court Ruling Paves Way for College Athletes to Be Classified as Employees

A federal appeals court decision challenges the NCAA's amateurism model, potentially granting athletes employee status under labor laws.

The Third Circuit Court rejected the NCAA's motion to dismiss a case arguing college athletes are employees under the Fair Labor Standards Act.
The case will return to district court to apply an economic realities test to determine athletes' employment status.
If deemed employees, athletes could be owed minimum wage and overtime pay, impacting NCAA's financial structure.
The ruling follows the 2021 Supreme Court decision allowing athletes to profit from their name, image, and likeness.
Legal and legislative actions regarding athletes' labor status are ongoing, with significant implications for college sports.