JOHNSON v. THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION

District Court, E.D. Pennsylvania·Decided September 22, 2021·No. 2:19-cv-05230·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

RALPH “TREY” JOHNSON, ET AL., : CIVIL ACTION individually and on behalf of all persons : similarly situated : : v. : : THE NATIONAL COLLEGIATE : ATHLETIC ASSOCIATION, ET AL. : NO. 19-5230

MEMORANDUM Padova, J. September 22, 2021

Plaintiffs, student athletes at five of the Defendant colleges and universities, contend that student athletes who engage in NCAA Division 1 (“D1”) interscholastic athletic activity for their colleges and universities are employees who should be paid for the time they spend related to those athletic activities. Plaintiffs, Ralph “Trey” Johnson, Stephanie Kerkeles, Nicholas Labella, Claudia Ruiz, Jacob Willebeek-Lemair, and Alexa Cooke, assert claims on behalf of themselves, a Fair Labor Standards Act (“FLSA”) collective, and three state classes against the colleges and universities they attend (or attended) (the “Attended Schools Defendants” or “ASD”), the National Collegiate Athletic Association (“NCAA”), twenty additional named D1 universities (the “Non Attended School Defendants” or “NASD”), and a putative Defendant class made up of 125 NCAA D1 colleges and universities. The First Amended Complaint (“Complaint”) asserts claims for violations of the FLSA, 29 U.S.C. § 200 et seq.; the Pennsylvania Minimum Wage Act, 43 Pa. Stat. § 333.101 et seq. (the “PMWA”); the New York Labor Law, N.Y. Lab. Law § 191 et seq. (“NYLL”); and the Connecticut Minimum Wage Act, Conn. Gen. Stat. Ann. § 31-58 et seq. (“CMWA”). The Complaint also asserts three common law unjust enrichment claims. The NCAA and NASD (together the “Moving Defendants”) have moved to dismiss the Complaint pursuant to Federal Rule of Civil Procedure 12(b)(1) on the ground that Plaintiffs lack standing to sue them under Article III because they are not joint employers of Plaintiffs. For the reasons that follow, the Motion is granted in part and denied in part. I. FACTUAL BACKGROUND The Complaint alleges the following facts. The NCAA is an association that regulates

intercollegiate sports and has jurisdiction over approximately 1,100 schools and nearly 500,000 student athletes. (Compl. ¶¶ 44-45.) The NCAA has entered into multi-year, multi-billion-dollar contracts with broadcasters ESPN, CBS, and Turner Sports to show athletic competitions between NCAA D1 member schools, and it distributes shares of those broadcasting fees to its member schools. (Id. ¶ 14.) In addition to shares of those broadcasting fees, NCAA D1 member schools also receive fees from multi-year, multi-million-dollar agreements with television and radio networks that they have entered into, either individually or as part of an NCAA conference, to broadcast athletic competitions between NCAA D1 member schools. (Id. ¶ 15.) The named Plaintiffs in this case are or were student athletes at Villanova University,

Fordham University, Sacred Heart University, Cornell University, and Lafayette College. (Id. ¶¶ 19-24.) The NASD are: Bucknell University, Drexel University, Duquesne University, Fairleigh Dickinson University, La Salle University, Lehigh University, Monmouth University, Princeton University, Rider University, Robert Morris University, Seton Hall University, Saint Francis University, Saint Joseph’s University, Saint Peter’s University, the University of Delaware, Pennsylvania State University, the University of Pennsylvania, the University of Pittsburgh, Rutgers State University of New Jersey, and Temple University. According to the Complaint, all of the Defendants jointly employed Plaintiffs and similarly situated persons. (Id. ¶ 26.) Student athletes do not have the option to play NCAA sports for wages at any NCAA D1 school. (Id. ¶ 43.) All member schools in the NCAA have agreed not to pay students to participate in intercollegiate varsity sports. (Id. ¶ 51.) The NCAA’s Bylaws prohibit schools from offering wages and prohibit student athletes from accepting wages. (Id. (citations omitted).) A student athlete who participates in NCAA sports can only receive payment based on athletic performance

in limited circumstances connected with competing in the Olympics. (Id. ¶¶ 56-58 (citations omitted).) NCAA D1 member schools require student athletes to participate in Countable Athletically Related Activities (“CARA”),1 which are recorded on timesheets under an NCAA D1 Bylaw. (Id. ¶ 93 (citation omitted).) NCAA Bylaws also require student athletes to participate in Required Athletically Related Activities like recruiting, fundraising and community service. (Id. ¶ 94.) A student athlete who fails to attend meetings, participate in practices, or participate in scheduled competitions can be disciplined, including suspension or dismissal from the team. (Id. ¶ 95 (citation omitted).) Student athletes have reported spending more than 30 hours per week on

athletically related activities, both CARA and non-CARA, and football players who attend schools in the NCAA football bowl and championship subdivisions report spending more than 40 hours per week on these activities. (Id. ¶ 100.) The NCAA D1 member schools exercise significant control over their student athletes. The NCAA Bylaws apply to all student athletes who participate in NCAA sports and they address “recruitment, eligibility, hours of participation, duration of eligibility and discipline.” (Id. ¶ 170 (citation omitted).) Student athletes who participate in NCAA sports are supervised by coaching

1 CARA include team conditioning; discussions of strategy; on-field, floor, or court activity; review of game film; strength training; individual workouts; and meetings with coaches. (Compl. ¶ 93 (citation omitted).) and training staff. (Id. ¶ 135 (citation omitted).) NCAA D1 member schools are required to have adult supervisors maintain timesheets for participants. (Id. ¶ 136 (citations omitted).) NCAA D1 member schools impose discipline on student athletes, including suspension and dismissal from a team, in instances of specified misconduct. (Id. ¶ 140 (citations omitted).) They also have handbooks that contain standards for controlling student athletes’ performance and conduct both

on and off the field. (Id. ¶¶ 139-41 (citations omitted).) These handbooks contain rules regarding agents, prohibiting certain categories of legal gambling, and restricting social media use, including restrictions on making derogatory comments about other teams. (Id. ¶ 141 (citation omitted).) NCAA D1 member schools also have NCAA team policies that restrict the legal consumption of alcohol and legal use of nicotine products by student athletes. (Id. ¶ 143.) Based upon these factual allegations, the Complaint asserts that Plaintiffs are the employees of Defendants, including the NCAA and NASD, and it asserts eight claims for relief, seeking payment of wages for the time Plaintiffs spent engaged in activities connected to NCAA sports. Count I asserts claims pursuant to the FLSA on behalf of Plaintiffs and the proposed FLSA

collective against all Defendants and the proposed Defendant class for failure to pay them minimum wages as employees. Plaintiffs and the members of the proposed FLSA Collective seek unpaid minimum wages, an equal amount as liquidated damages, attorneys’ fees, and costs in connection with Count I.

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JOHNSON v. THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, (E.D. Pa. 2021).

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