By Dawn M. Knepper, of Ogletree, Deakins, Nash, Smoak & Stewart, P.C.
Give me a P, give me an A, give me a Y, give me a D, give me an A, give me a Y… what’s that spell? PAYDAY!
Yes indeed, cheer Californian cheerleaders. California law now mandates that California professional cheerleaders be classified as employees, rather than independent contractors. Specifically, on July 15, 2015, California Governor Jerry Brown signed A.B. 202 that requires all California-based professional sports teams to pay their cheerleaders the minimum wage. Additionally, as employees, cheerleaders in California are now eligible for overtime, workers’ compensation, paid sick leave, and other benefits. The law now requires a cheerleader who is utilized during its exhibitions, events, or games to be deemed an employee. The bill also applies to third parties that contract with teams for cheerleaders.
While some may roll their eyes, in the thought that this is another example of an “extreme” California employment law, California is apparently just a line leader of a trend that may likely spread throughout the country.
The Cheerleaders’ Fair Pay Act (CFPA), was introduced in the New York State Assembly on June 3, 2015. As currently drafted, the bill would require New York teams to pay their cheerleaders the minimum wage. This would include the two National Basketball Association (NBA) franchises and one NFL franchise based in New York.
Additional scrutiny is also occurring on a national scale for all employers. On July 15, 2015, the United States Department of Labor issued an Administrator’s Interpretation (Interpretation) through its Wage and Hour Division (DOL), stating that most workers do not qualify as independent contractors under the Fair Labor Standards Act (FLSA). Thus, it’s not just the sports franchises that need to be doing a close scrutiny of any persons classified as independent contractors, as all employers should take a look to avoid the risk of misclassification.
