NFL Teams Can’t Collect All Of Players’ Workers’ Comp Awards

NU Online News Service, March  30, 12:13 p.m. EDT

A U.S. District Court judge has granted the National Football League Players Association a permanent injunction against the league, resolving a workers’ compensation-related dispute that has gone on for decades.

Judge Paul A. Crotty ruled that a paragraph in the NFL Collective Bargaining Agreement (CBA)—a matter of contention since 1977—provides only for a time offset that NFL teams can take from injured players’ state workers’ comp awards. In other words, teams are only permitted to collect an offset, or reimbursement, based on a formula that calculates when players received salary and workers' comp payments at the same time.

Teams had argued they were entitled to a dollar-for-dollar offset—reimbursement of all of the workers’ comp awarded to a player—to offset the salary benefits paid by teams to players.

Adam J. Kaiser, an attorney who represents the players, said the ruling was "incredibly important." The contracts of current players are not guaranteed, meaning teams can drop them if they are hurt and can no longer play. Additionally, former players receive no post-employment health insurance.

"The NFL talks a good game when it comes to taking care of its players but they despise them," Kaiser says. "Injured players just cost them money."

The issue has gone to arbitration multiple times. Crotty basically upheld a previous arbitration decision on the matter, as Kaiser says he has been fighting with teams for about 7 years and won on every level. But during the final year of the CBA teams attempted to find a way around previous rulings, saying they only applied to specific players on specific teams involved in past litigation, and were more aggressive in going after full reimbursement.

"The only way to deal with them was to go back to Judge Crotty and have him confirm the arbitral award the players won and grant a permanent injunction," Kaiser says. With the ruling from a federal judge, the players now have an enforceable federal court judgement, he adds.

“The case here involves an attempt to continuously re-arbitrate the interpretation of the same contractual provision,” Crotty writes. “The court considered and rejected all of [the teams’] other arguments in opposition to this motion.”

The players asked the judge to hold the teams in contempt, but Crotty stopped short of doing so. At least, not "at this juncture," he writes.

The collective bargaining agreement expired on March 11, and the owners have locked out the players.

Comments

Resource Center

View All »

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

Extending Contact Center Capabilities Across the Insurance Enterprise

Today advancements in technology are making a big impact on business and society. To yield...

Risk Management Report eNewsletter

Identify problems involving emerging risks, reinsurance, and business interruption with help from Risk Management Report - FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.