Originally published by BGS.
Former student-athletes at the University of Pennsylvania (“Penn”) filed suit against Penn, the NCAA, and more than 120 other NCAA Division I member institutions. In the suit, the plaintiffs alleged that student-athletes are “employees” within the meaning of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201. Therefore, the plaintiffs contend the NCAA and its member institutions violated the FLSA by not paying student-athletes a minimum wage. The District Court disagreed with the plaintiffs and dismissed their claims. The Seventh Circuit agreed with the District Court and held “student athletes are not employees and are not covered by the FLSA.”
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