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Johnson v. National Collegiate Athletic

Association: Third Circuit Allows College

Athletes' Claim for Wages to Move Forward



September 6, 2024

In Johnson v. National Collegiate Athletic Association, the U.S. Court of Appeals for the Third Circuit
(Third Circuit) considered whether college athletes can be barred as a matter of law from asserting claims
for compensation because they are not employees under the Fair Labor Standards Act (FLSA), the federal
law that sets minimum wage and overtime pay requirements. On July 11, 2024, the court held that the
athletes could not be barred from bringing an FLSA claim, and remanded the case to the lower court to
determine whether the athletes can be considered employees under the statute. This Sidebar provides a
brief overview of the FLSA, discusses the Third Circuit's decision in Johnson v National Collegiate
Athletic Association, and offers considerations for Congress.

Fair  Labor   Standards Act

The FLSA, 29 U.S.C. §S 201 et seq., sets forth federal minimum wage and overtime pay requirements for
most private and public sector employees. The act defines an employee as any individual employed by
an employer, and defines employ to include to suffer or permit to work. The act further states that an
employer includes any person acting directly or indirectly in the interest of an employer in relation to an
employee.
Reflecting on the scope and the plain words of the statute, the Supreme Court has described the FLSA as
having striking breadth and that the act contained no definition that solves problems as to the limits of
the employer-employee relationship. The Court recognized that FLSA's broad definition ofemploy
may  expand the meaning of employee to include some parties who might not qualify as such under a
strict application of traditional agency law principles.
While broadly providing minimum wage and overtime pay protections to most employees in the United
States, the FLSA also includes exemptions for certain employees. For example, the act exempts from
minimum  wage and overtime pay requirements any employee employed in a bona fide executive,
administrative, and professional capacity. Furthermore, courts have construed the terms of the act to
exclude certain workers, such as independent contractors and interns. Following Supreme Court precedent

                                                               Congressional Research Service
                                                                 https://crsreports.congress.gov
                                                                                   LSB11223

 CRS Legal Sidebar
 Prepared for Members and
 Committees of Congress

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