Wednesday, September 6, 2017

Brave New World of Sports Employment--Gamer Superstars



A 17 year-old video gamer who excels at a game called Overwatch was just signed to a player contract for a reported $150,000.
As a non-digital native, i.e., an old person, I was vaguely aware that there are such things as professional video gamers, and that some of them make money at it.  Until recently, I was unaware that there was actually a professional Overwatch league, with, you know, teams and stuff.  I suppose at some point, there will be uniforms, and cheerleaders, and over-priced food, as well.
But the lawyer in me looks at these situations and starts thinking about the implications.  And there are some real legal issues here.
The first, and most obvious, is the Fair Labor Standards Act, which regulates child labor.  And make no mistake, many if not most of these players, at least early on, will be underage minors.  In fact, "sinatraa's" mother had to sign the contract with NRG because he was under age for legal competency.  So these teams have to be aware that they are treading on dangerous ground, not just from the federal law, but state and local ordinances, as well.
The magic age for allowing children to work is 16 in non-hazardous occupations (and as young as 14 in limited circumstances) and 18 in hazardous occupations. Of particular note here is the FLSA exception that exempts children who are "performers" in motion picture or theatrical businesses. This provision is specific enough that it does not cover athletes, and I suspect that large-scale employment of children under the age of 16 in these kinds of gamer events is going to start raising some eyebrows (and lawsuits) quickly. In addition, these teams have to be cognizant of education issues - typically companies are not allowed to set work during school hours, or, must provide some type of make-up tutoring for their under age charges.
Moreover, a majority of states have child labor laws that piggyback on to the federal exemption, and in some cases go much further in protecting child employees.
That's for starters.  There will be workers compensation claims--repetitive stress injuries are endemic to these gaming activities. And because the kid star is a kid, the clubs will be entering into arrangements with the guardians, parents or trustees of the child's estate, rather than the actual athlete. I'm thinking we'll see variations of the Coogan Law in California, where the compensation for the gamer's performance will be protected from the parents/guardians--what does that mean for incentives and other inducements?
A brave new world, indeed.


No comments:

Post a Comment