Employees

Yesterday the National Labor Relations Board determined that college players are employees.

There are a lot of talking heads on the airwaves this morning discussing the ramifications of Northwestern football players being considered employees.  Therefore, they can unionize.

It all makes for interesting discussions and questions but it all begins with the identification of these young men as employees of the university.  Most are there on scholarships.  Most will not go on to professional ball playing.  Many are seeking a first class education made available to them by their football talents.

The Internal Revenue Service has many definitions of employees versus independent contractors.  They also have penalties for the mishandling of workers by treating them as independent contractors. 

IRS:  Does the company control or have the right to control what the worker does and how the worker does his or her job?

IRS:  Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

IRS:  Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

The National Labor Relations Board ruling is the first step.  There are hurtles ahead for this concept. 

'til later