THE FIGHT OFF THE FIELD - LEGAL ISSUES SURROUNDING COMPENSATION OF FEMALE PROFESSIONAL ATHLETES - SEGAL MCCAMBRIDGE

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THE FIGHT OFF THE FIELD - LEGAL ISSUES SURROUNDING COMPENSATION OF FEMALE PROFESSIONAL ATHLETES - SEGAL MCCAMBRIDGE
The United States players stand on the field during player introductions with their tops turned inside out as part of the team's equal
pay campaign before the SheBelieves Cup match against Japan at Toyota Stadium on March 11, 2020 in Frisco, Texas. In March 2019,
28 players of the USWNT filed a federal lawsuit alleging USSF violated two federal laws: the Equal Pay Act and Title VII of the Civil
Rights Act of 1964. (Photo by Alika Jenner/Getty Images)

THE FIGHTOFF THEFIELD
Legal Issues Surrounding Compensation
of Female Professional Athletes
By Mari Bryn Dowdy and Mailise Marks

“Let’s not forget the fight off the field. It’s time we pay our USWNT equally.”
                                                               –VICE PRESIDENT KAMALA HARRIS ON TWITTER, JUNE 11, 2019

“To @USWNT: don’t give up this fight. This is not over yet.”
                                                                              –PRESIDENT JOE BIDEN ON TWITTER, MAY 2, 2020

30   NEW JERSEY LAWYER | FEBRUARY 2021                                                                                         NJSBA.COM
E
           very professional league and sports organization in
           the United States has its own structure of compen-
           sation and benefits. While the level of pay varies
           from sport to sport, a common reality has arguably
           existed since the advent of professional sports in
society: female athletes consistently make less than men.

  Generally, athletes sign a contract with a particular team consisting of a base
salary and usually a signing bonus. The base salary is typically guaranteed
money, even if the athlete is injured or later released from the team. Athletes
may also receive performance bonuses based on their team’s success, such as
qualifying for tournaments or championships.1 Athletes who are represented by
labor unions (i.e. U.S. Women’s National Soccer Team Players Association or
Women’s National Basketball Players Association) regularly engage in contract
negotiations with their employers. Non-union athletes are typically represented
by advocate organizations (i.e. National Women’s Hockey League Players’ Asso-
ciation or Commission for Equity in Women’s Surfing). Unlike unions, these
entities do not engage in collective bargaining.2 Union athletes are able to use
their collective bargaining agreements (CBA) to push for improvements in pay,        MARI BRYN DOWDY is an associate attor-
                                                                                     ney with Segal McCambridge Singer &
benefits and working conditions. Athletes may also seek to challenge the league
                                                                                     Mahoney, Ltd., working within the firm’s
itself or even attempt to form new leagues when collective bargaining agree-         Sports, Entertainment and Recreation
ments result in gender inequality.                                                   practice group. Dowdy is admitted in state
                                                                                     and federal court in Texas and represents
  Gendered pay discrimination for professional athletes is not a novel issue and     clients in complex and class action litiga-
the fight for equality has continued to present day, even headlining some of the     tion, as well as product liability, premises
                                                                                     liability and personal injury defense.
biggest labor disputes in recent sports history. From the basketball court, to the
soccer pitch and even the hockey rink, women’s fight for fair compensation in
professional sports presents an amalgamation of legal issues. In recent years,
female athletes have made great strides in bringing these issues to the public’s
attention. However, as illustrated below, these steps are just the beginning of
making truly substantial changes toward equality for professional female ath-
letes. These disputes, negotiations and agreements brought many of legal issues
into the national spotlight.

                                                                                     MAILISE MARKS is an associate attorney
USWNT: The Long Battle
                                                                                     with Segal McCambridge Singer &
  In March 2016, five U.S. Women’s National Team soccer players—Carli Lloyd,         Mahoney, Ltd., working within the firm’s
Alex Morgan, Megan Rapinoe, Rebecca Sauerbrunn and Hope Solo—filed a dis-            Sports, Entertainment and Recreation
                                                                                     practice group. Marks, who is admitted in
crimination    complaint       with   the   Equal   Employment      Opportunity      Connecticut, Massachusetts, New Jersey
Commission (EEOC) alleging wage discrimination. This was a necessary proce-          and New York, litigates in an array of
                                                                                     matters, including premises liability
dural step before a federal discrimination lawsuit could be filed against their
                                                                                     defense in multiple jurisdictions.
employer, the United States Soccer Federation.3 In April 2017, the two sides
announced they had ratified a new five-year CBA, which included an increase to

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both base pay and bonuses. However,           granted USSF’s motion for summary            needs. Each team will have between 18
the new agreement still allegedly did         judgment on the players’ wage discrimi-      and 21 “professional positions” for staff.
not represent equal pay with the men’s        nation claims but preserved the working      Additionally, under a venue selection
national team. Additionally, the agree-       conditions claims based on alleged dis-      policy included as part of the settle-
ment did not attempt to resolve the           crimination in air travel, hotel accom-      ment, the federation will “seek to pro-
EEOC charge.                                  modations and medical and training           vide equally acceptable venues and field
   The EEOC officially ended its investi-     support. In the 32-page ruling, Judge        playing surfaces” for the national teams.
gation in February 2019 and issued right      Klauser includes an extensive history of        In settling the issues related to work-
to sue letters to the players, which estab-   the CBA negotiations between USSF and        ing conditions, the path is now cleared
lished that the players had exhausted         the USWNTPA over the past decade. He         for the team to appeal Judge Klausner’s
their obligation to seek resolution           held that that members of the women’s        May ruling that rejected their equal pay
through the EEOC.4 In March 2019, 28          team knowingly and willingly sacrificed      claims. Levinson confirmed in Decem-
players of the USWNT filed a federal          potential earning power in their CBA         ber, “we now intend to file our appeal to
lawsuit in the U.S. District Court for the    negotiations in exchange for the securi-     the Court’s decision which does not
Central District of California alleging       ty of guaranteed annual salaries from        account for the central fact in this case
USSF violated two federal laws: the           USSF. In other words, the women reject-      that women players have been paid at
Equal Pay Act and Title VII of the Civil      ed a pay-to-play structure similar to the    lesser rates than men who do the same
Rights Act of 1964. The players alleged       one in the men’s agreement and instead       job.”6 While a ruling on the USWNT’s
the USSF engaged in gender discrimina-        accepted greater base salaries and bene-     remaining claims would become case
tion on the basis of pay and other con-       fits. “Plaintiffs cannot now retroactively   precedent for future union-management
ditions of employment, e.g. allegedly         deem their CBA worse than the MNT            disputes, the appeal process—between
substandard training conditions and           CBA by reference to what they would          15 to 32 months—could still complicate
travel accommodations.                        have made had they been paid under           negotiations when the current CBA
   The Equal Pay Act prohibits employ-        the MNT’s pay-to-play structure when         expires this year.7
ers from wage discrimination on the           they themselves rejected such a struc-
basis of sex but does not automatically       ture,” Klausner stated.                      WNBA: The Recent Victory
obligate employers to pay men and               USWNT have flatly rejected this rul-          After 23 seasons of subpar playing
women employees the same wages as             ing and confirmed their intent to appeal     conditions the WNBA secured a progres-
the comparison of “work” is not always        the decision to the Ninth Circuit Court      sive new collective bargaining agree-
straightforward. Rather, the analysis         of Appeals. “The argument that women         ment in January 2020, which had a
involves a careful comparison of rele-        gave up a right to equal pay by accept-      record 90% player vote.8 The new CBA
vant job descriptions, including assess-      ing the best collective bargaining agree-    raises the WNBA salary cap by 30% and
ing whether the jobs require equal skill,     ment possible in response to the federa-     boosts maximum annual salaries from
effort and responsibility and are per-        tion’s refusal to put equal pay on the       $117,500 to $215,000. Players will also
formed under similar working condi-           table is not legit reason for continuing     be able to earn up to $250,000 apiece
tions. Ultimately, the employer must          to discriminate against them,” said          from a $1.6 million pool the league is
show that the difference is due to a non-     Molly Levinson, USWNT spokesperson.          dedicating to marketing agreements and
discriminatory     reason(s).    In   other     In December 2020, the USWNT and            will gain free agency after five years
words, an employer must have lawful           U.S. Soccer agreed to settle their claims    (down from six). Teams will also provide
reasons for the pay disparity. The USSF       of unequal working conditions before         housing with two bedrooms for athletes
denied the players’ claims, arguing in a      trial was scheduled to begin in January      with children, individual hotel rooms
May 2019 court filing that the pay dif-       2021 (Hays, 2020).5 According to the         on the road and flight upgrades. The
ferential between the men and women           proposed settlement, USSF agrees to pro-     groundbreaking provisions of the agree-
players is “based on differences in aggre-    vide an equal number of charter flights,     ment though focus on players who are
gate revenue generated by the different       as well as comparable hotel accommo-         mothers or expecting parents. Under the
teams and/or any other factor other           dations. USSF will also enact a new          old CBA, athletes who had children lost
than sex” and that the two teams are          “Senior National Team Professional Sup-      pay when they lost work time and had
“physically and functionally separate         port Policy” that seeks to ensure equali-    to cover their own childcare costs; now,
organizations.”                               ty of staffing while allowing each           players will receive their full salaries dur-
   In May 2020, Judge Gary Klausner           national team flexibility for its specific   ing leave and a $5,000 stipend for child-

32    NEW JERSEY LAWYER | FEBRUARY 2021                                                                                       NJSBA.COM
unequal pay and working conditions
                                                                                         continued to plague women’s profes-
                                                                                         sional leagues and when the Canadian
                                                                                         Women’s Hockey League folded in 2019,
                                                                                         North America players were left with
                                                                                         only one women’s hockey league in
                                                                                         which to play: the National Women’s
                                                                                         Hockey League.
                                                                                           During the NWHL’s inaugural season
                                                                                         in 2015, player salaries ranged between
                                                                                         $10,000 and $26,000. Players were
                                                                                         stunned when the league announced in
                                                                                         2016 that it was cutting salaries in order
                                                                                         to keep the league afloat.11 However,
                                                                                         without a CBA, players did not have
                                                                                         much recourse unless they were willing
                                                                                         to walk out. Ultimately, over 200 players
                                                                                         decided they would not play in any pro-
                                                                                         fessional North American leagues in
                                                                                         2019      unless    working      conditions
Nneke Ogwumike of the Los Angeles Sparks is the president of the WNBA Players Asso-      improved, and they and formed the Pro-
ciation. The WNBA players secured a progressive new collective bargaining agreement in   fessional Women’s Hockey Players’ Asso-
January 2020. The new CBA raises the WNBA salary cap by 30% and boosts maximum
                                                                                         ciation.12 The PWHPA then led a six-stop
annual salaries from $117,500 to $215,000. (Photo by Douglas P. DeFelice/Getty Images)
                                                                                         barnstorming Dream Gap Tour across
                                                                                         the U.S. and Canada. The hope was that
care costs. Additionally, veteran players   table but may also represent just how        the Dream Gap Tour would fill a short,
(those who have played at least one sea-    much further women must go before            one-season void without professional
son) will receive up to $60,000 to cover    achieving equal compensation.                women’s hockey, but when no new,
costs related to adoption, surrogacy and                                                 “sustainable” league was formed by the
IVF treatments. The new CBA even man-       NWHL and PWHPA: The New Fight                time the PWHPA finished its tour in
dates players are given a private place        In 2017, the U.S. Women’s National        March 2020, PWHPA was unsure of its
for nursing.                                Hockey Team boycotted the world              future. The COVID-19 pandemic inten-
  Although the new WNBA calendar            championships of the International Ice       sified that uncertainty.
will make it harder to play overseas and    Hockey Federation after contract nego-         Then,      in    October    2020,    Secret
stateside in the same year, the higher      tiations had broken down. Thirteen           announced its pledge of $1 million to
salaries will hopefully relieve the pres-   days after the boycott was announced,        the PWHPA, the largest financial com-
sure athletes feel to travel overseas in    the team was able to secure a new deal       mitment ever made to professional
the off-season to supplement their          that improved the team’s annual com-         women’s hockey in North America.13
income. Additionally, the league agreed     pensation to roughly $70,000 per player,     This contribution not only helped play-
to prepare and promote players for          plus performance bonuses, and included       ers return to the ice but also ensured the
coaching and others jobs in the offsea-     travel and insurance provisions com-         Dream Gap Tour would continue.
son. As innovative as these new changes     mensurate with what the men’s national       PWHPA head and Hockey Hall of Famer
are, their total cost is about $1 million   team received. USA Hockey also agreed        Jayna Hefford confirmed the $1 million
per WNBA team per year, which means         to other player requests, such as estab-     from Secret will be divided between
the proportion of league revenues paid      lishing a committee to look into how         operational costs, cash prizes for players
to players will rise only from approxi-     the federation could improve its market-     on the 2021 Dream Gap Tour and lastly,
mately 20% to 30%, in contrast to most      ing, scheduling, public relations efforts    media and marketing to ensure the
major sports which are at around 50%.9      and promotion of the women’s game,           PWHPA remains visible.14
This may appear as WNBA players leav-       plus fundraising and other efforts for         Meanwhile, the NWHL has made
ing considerable cash on the negotiating    girls’ developmental teams.10 However,       improvements since 2016. In 2019, the

NJSBA.COM                                                                                       NEW JERSEY LAWYER | FEBRUARY 2021   33
salary cap for each team increased from              story/pay-discrimination-women-             /id/28971949/analysis-equal-pay-
$100,000 to $150,000, and players start-             sports-labor-issue                          sports-really-means-fight-goes-us-
ed receiving 50% of revenue from                3.   The USSF, a 501(c)(3) not-for-profit        women-soccer
league-level sponsorship and media                   entity, employs more than 500           10. Kaplan, E. and Carlisle, J. (2020,
deals, which included agreements with                people, including all current and           June 3) USWNT lawsuit versus U.S.
Dunkin Donuts and Twitch, a video                    former members of the men’s and             Soccer explained: Defining the pay
streaming service used for game broad-               women’s national teams.                     gaps, what’s at stake for both sides.
casts.15 In December 2020, NBCSN and            4.   The right to sue letters could have         ESPN. Retrieved from espn.com/
the NWHL reached a deal to televise                  been issued as early as Fall 2016 but       soccer/united-states-usaw/story/
league playoff games for the COVID-                  the players likely did not request          4071258/uswnt-lawsuit-versus-us-
abbreviated 2021 season.      16
                                   Given that        the letters since they were                 soccer-explained-defining-the-pay-
these developments still do not result in            negotiating a new CBA with USSF             gapswhats-at-stake-for-both-sides
NWHL players earning a livable wage,                 (McCann, 2019).                         11. Berkman, S. (2016, November 22)
the PWHPA continues to hold out for a           5.   Hays, G. (2020, December 1)                 Pay Cults Jolt Women’s Pro League
league that can provide one. Ultimately,             USWNT, U.S. Soccer settle part of           and Leave Its Future Uncertain. The
the future success of women’s profes-                equality suit; equal wages still            New York Times. Retrieved from
sional sports organizations in a post-               unresolved. ESPN. Retrieved from            nytimes.com/2016/11/22/sports/ho
pandemic era will rely not only on equi-             espn.com/soccer/united-states-              ckey/nwhl-pay-cut-salary.html
table compensation for its players but               usaw/story/4251125/uswntus-             12. Ayala, E. (2019, May 6) ‘We’re not
also large investments in the organiza-              soccer-settles-part-of-equality-suit-       going to play’: Will a player boycott
tions themselves.                                    equal-wages-still-unresolved                save women’s hockey…or harm it?
     Since the creation of the Equal Pay        6.   Cohen, L. (2020, December 2)                The Guardian. Retrieved from
Act and Title IX, female athletes in the             USWNT will get “long overdue                theguardian.com/sport/2019/may/0
United States have been fighting to                  equal working conditions” in                6/womens-hockey-boycott-north-
compete on the same footing as men.                  settlement with U.S. Soccer. CBS            america-nwhl-cwhl
Today, female professional athletes are              News. Retrieved from cbsnews.com/       13. Kaplan, E. (2020, October 28) Inside
building public support, organizations               news/uswnt-equal-working-                   the $1 million commitment that
and partnerships in order to create a                conditions-settlement-us-soccer/            will elevate the Professional
market that supports their skills and           7.   McCann, C. and Novy-Williams, E.            Women’s Hockey Player Association
pays them what they are truly worth.                 (2020, December 1) USWNT Partial            Dream Gap Tour. ESPN. Retrieved
Once sports reemerge from the freeze of              Settlement Sets Up Appeal Which             from espn.com/nhl/story/_/
the COVID pandemic, women’s leagues                  May Be Years Away. Sportico.                id/30201356/inside-1-million-
and federations will no doubt continue               Retrieved from sportico.com/law/            commitment-elevate-professional-
to face evolving expectations and novel              analysis/2020/uswnt-us-womens-              women-hockey-player-association-
issues as they answer the fundamental                soccer-team-settlement-                     dream-gap-tour
question of how to fairly compensate                 1234617521/                             14. Id.
their athletes in 2021.                         8.   Evans, R. (2020, May 13) A CBA By       15. Kaplan, E. (2020, February 7) Amid
                                                     Women, For Women: Demographics,             NWHL boycott, ‘a little TLC’ going
                                                     Identity, and the New WNBA-                 a long way for Boston Pride. ESPN.
Endnotes                                             WNBPA CBA. OnLabor. Retrieved               Retrieved from espn.com/espnw/
1.    Perras, C. (2019) Moving Towards               from onlabor.org/demographics-and-          story/_/id/28647361/amid-nwhl-
      Equal Pay for Professional Female              identity-in-the-new-wnba-wnbpa-             boycott-little-tlc-going-long-way-
      Athletes: What We Can Learn from               cba-2/#:~:text=And%20proof%20of%            boston-pride
      Equal Pay Legislation in Iceland.              20this%20is,CBA%20with%20just%          16. O’Brien, J. (2020, December 22)
      Ind. Int’l & Comp. L. Rev. Retrieved           2051.5%25%20support                         NBCSN will air NWHL’s 2021 Isobel
      from mckinneylaw.iu.edu/iiclr/pdf/        9.   Keating, P. (2020, May 14) Analysis:        Cup Semifinals and Final live on
      vol30 Kelly, M. (2019, July 29) Pay            What equal pay in sports really             Feb. 4-5. NBC Sports. Retrieved from
      Discrimination in Women’s Sports               means, as the fight goes on for U.S.        nhl.nbcsports.com/2020/12/22/nw
      Is a Labor Issue. TeenVogue, Politics.         women’s soccer. ESPN. Retrieved             hls-2021-isobel-cup-semifinals-and-
      Retrieved from teenvogue.com/                  from espn.com/espnw/story/_                 final-will-air-on-nbcsn-feb-4-5/

34     NEW JERSEY LAWYER | FEBRUARY 2021                                                                                      NJSBA.COM
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