The Seventh Circuit agreed that the plaintiffs the lacked standing to sue either the NCAA or other universities, since their connection to the entities was too tenuous to be considered employment. Moreover, although the plaintiffs had standing to sue University of Pennsylvania, the District Court could properly reject the plaintiffs' claim that they were akin to "trainees" or "private-sector interns" so as to entitle them to minimum wages, since economic reality of the relationship between student athletes and their schools was one of amateurism. The Seventh Circuit also noted that Field Operations Handbook for Dept. of Labor indicated that student athletes are not employees under FSLA because they are only participating in extracurricular activities conducted primarily for their own benefit.
Plaintiffs, former track and field athletes enrolled at University of Pennsylvania, sued the NCAA alleging that their participation as student athletes on track and field team established their employee status at school so as to entitle them to minimum wages under Fair Labor Standards Act (FSLA). Berger v. Nat'l Collegiate Athletic Ass'n, No. 16-1558 (7th Cir. December 5, 2016). The District Court dismissed the claim for failure to state valid cause of action. The Seventh Circuit affirmed.
The Seventh Circuit agreed that the plaintiffs the lacked standing to sue either the NCAA or other universities, since their connection to the entities was too tenuous to be considered employment. Moreover, although the plaintiffs had standing to sue University of Pennsylvania, the District Court could properly reject the plaintiffs' claim that they were akin to "trainees" or "private-sector interns" so as to entitle them to minimum wages, since economic reality of the relationship between student athletes and their schools was one of amateurism. The Seventh Circuit also noted that Field Operations Handbook for Dept. of Labor indicated that student athletes are not employees under FSLA because they are only participating in extracurricular activities conducted primarily for their own benefit.
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