High court sides with ex-athletes in NCAA compensation case
Legal Events
The Supreme Court decided unanimously Monday that the NCAA can’t enforce rules limiting education-related benefits — like computers and paid internships — that colleges offer to student athletes.
The case doesn’t decide whether students can be paid salaries. Instead, the ruling will help determine whether schools decide to offer athletes tens of thousands of dollars in those benefits for things including tutoring, study abroad programs and graduate scholarships.
The high court agreed with a group of former college athletes that NCAA limits on the education-related benefits that colleges can offer athletes who play Division I basketball and football are unenforceable.
Justice Neil Gorsuch wrote for the court that the NCAA sought “immunity from the normal operation of the antitrust laws,” which the court declined to grant.
Under current NCAA rules, students cannot be paid, and the scholarship money colleges can offer is capped at the cost of attending the school. The NCAA had defended its rules as necessary to preserve the amateur nature of college sports.
But the former athletes who brought the case, including former West Virginia football player Shawne Alston, argued that the NCAA’s rules on education-related compensation were unfair and violate federal antitrust law designed to promote competition. The Supreme Court upheld a lower court ruling barring the NCAA from enforcing those rules.
As a result of the ruling, the NCAA itself can’t bar schools from sweetening their offers to Division I basketball and football players with additional education-related benefits. But individual athletic conferences can still set limits if they choose.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.