US college athletes may be employees under new test, court rules

July 11 (Reuters) - A U.S. appeals court on Thursday created a test for courts to determine when college athletes are the employees of their schools and the governing body for American intercollegiate sports, making them eligible for the minimum wage.

In the first ruling of its kind, a panel of the Philadelphia-based 3rd U.S. Circuit Court of Appeals said athletes may be regarded as employees under federal wage laws if they primarily perform services for their schools' benefit "in return for express or implied compensation or in-kind benefits."

The ruling allows a group of former college athletes to pursue a proposed class action against the National Collegiate Athletic Association and their former schools.

It follows a landmark $2.8 million settlementNew Tab, opens new tab by the NCAA in May to resolve class-action lawsuits claiming it had violated antitrust law by restricting the compensation and benefits to students for their athletic service. In March, Dartmouth Co...
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