Sports Management
Tae123
SpMgt577_Ch11_Discussion_Notes.pptx
Labor Law
Chapter 11
Development of Labor Law in the United States
Labor law in the United States emerged in the wake of the Industrial Revolution.
Union: An organized group of employees who use collective strength to protect member rights
Development of Labor Law in the United States
In 1935, the National Labor Relations Act (NLRA) was passed by Congress
The primary body of labor law in the United States for governing the relationship, rights, and responsibilities between workers and employers
National Labor Relations Board
Created by the NLRA to enforce the NLRA
An independent federal agency
Applies only to private businesses
NLRA Section 7
Provides employees the following rights:
Form, join, or assist unions
Collectively bargain
Engage in concerted activities
Refrain from using rights provided by the NLRA unless union membership is a condition of employment
Professional Sports and Unions
NBA players were first to unionize (1954).
Now, players for MLB, NFL, and NHL all have players associations (unions).
NCAA and unions
In 2014, a group of football players filed a petition to unionize.
It was controversial because NCAA does not recognize its athletes as employees; section 7 allows only employees to unionize.
The court applied the control test to determine whether athletes were employees.
The court found for NCAA (reversing lower court decision) based on need for stability.
Collective Bargaining
The negotiation process through which employers and unions develop collective bargaining agreements (CBAs)
A CBA is a contract that outlines the rights and responsibilities of the employment relationship
The NLRA requires the process to take place at mutually agreed-upon places and times and in good faith for mandatory terms such as the following:
Wages
Hours
Conditions of employment
NLRA and Economic Weapons
Lockout
Employees are literally locked out of work by employers.
It’s illegal to impose a lockout when a CBA is in place.
Decertification
Vote of union members to dissolve union
Important when employees want to challenge labor practices through antitrust litigation
Strikes
Employees refuse to work
Collective Bargaining in Pro Sports: Mandatory Terms
8
Conditions of employment
Standards for employer: workplace safety
Standards for employee
Eligibility
Grounds for dismissal
Drug testing policies
Wages
The mandatory bargaining term often at issue in CBA renegotiations
Example: NFL salary cap, calculated by league revenue and percentage league agrees to share with players
Hours
For pro athletes, the focus is on number of games.
Also, off-season meetings: conditioning, mini camps
Conduct Prohibited by NLRA: Investigation by NLRB
Unfair labor practice charge:
A filing made by someone alleging a violation of the NLRA
Injunction:
While the charge is investigated, the NLRB may seek an injunction requiring one of the parties to refrain from doing something that may be wrongful.
Defendant files an answer.
Trial:
Resulting in either a cease and desist in the unfair labor practice or a dismissal of the complaint
Violations of NLRA Section 8
Interference:
Employers can’t interfere with employees’ right to unionize.
Restraint and coercion:
Threatening or pressuring employees not to exercise Section 7 rights
Dominating or interfering with the formation of a labor organization
Domination occurs when the employer participates in the formation of the union to the point that it is viewed as the employer’s creation.
Violations of NLRA Section
Employers’ discriminating against employees who have filed NLRA charges
Failure to meet at reasonable times and to bargain in good faith
This could include the failure to provide information requested by labor.
This does not include information sought by the media or those not party to the CBA negotiations.
Developments
Labor law continues to shape the rights and interests of professional athletes.
CBAs need to be renegotiated when they expire, triggering labor law problems.
Sport managers need to understand the role of labor law in managing professional athletes.
What to watch for:
The role of labor law and intercollegiate athletics may change.
image1.jpeg
image4.png
image5.svg
.MsftOfcThm_Accent1_Fill_v2 { fill:#5B9BD5; } .MsftOfcThm_Accent1_Stroke_v2 { stroke:#5B9BD5; }
image2.jpeg
image14.png
image15.svg
.MsftOfcThm_Accent1_Fill_v2 { fill:#5B9BD5; } .MsftOfcThm_Accent1_Stroke_v2 { stroke:#5B9BD5; }
