U.S. Appeals Court Ruling Redefines College Athletes' Status

A U.S. appeals court created a test to determine when college athletes are employees of their schools, making them eligible for minimum wage. The court's decision follows a significant settlement with the NCAA and challenges the notion that amateur status precludes employment. The ruling may impact future class actions.

In a landmark decision, the Philadelphia-based 3rd U.S. Circuit Court of Appeals has established a test for determining when college athletes can be considered employees of their schools, thereby making them eligible for the minimum wage.

The ruling follows a $2.8 million settlement by the NCAA to resolve antitrust lawsuits and challenges the longstanding view that college athletes cannot be employees due to their amateur standing.

This test could open the doors for future class actions and fundamentally alter the landscape of American intercollegiate sports.

(With inputs from agencies.)