WWE Lawsuit seeks recognition for wrestlers' rights.

[Jonny Worldbeater]

Courtesy of the Wrestling Observer

No significant details are available regarding a lawsuit over an issue that has been talked about for decades, the classifying of pro wrestlers as independent contractors.

The issue is somewhat timely because in his recent media appearances, Jesse Ventura, now on the bad side of Vince McMahon since McMahon turned down (actually McMahon had one meeting with Ventura and never got back to him nor would take any of his phone calls) his proposed angle that would end up with WWE backing him in a run for the presidency, has talked about the issue. Since the WWE is a major corporation that gives corporate donations to both major parties, the last thing they’d want to do is offend both ruling parties by endorsing an independent with no chance to win. Ventura has said that if he was elected to the Senate that the first thing he would do is go after WWE for all the back taxes for failing to list pro wrestlers as employees.

On 7/24, WWE was served with a lawsuit from three former wrestlers filing a class action lawsuit for all the company wrestles from recent years alleging breach of contract and unjust enrichment arising from wrestlers classified as independent contractors and not WWE employees. According to the recently filed WWE 10-Q report, the company has not formally responded to the complaint but of course, deny any liability for claims asserted.

All that is known is one of the three wrestlers has the last name Levy, who almost assuredly would be Scott “Raven” Levy. While I can’t confirm it is Levy, I do know Levy has talked for years about that very subject, which has been talked about in dressing rooms for two decades.

The difference between an employee and an independent contractor is that an independent contractor essentially works a job, like a painter, where he and the person employing him for a specific job, set up terms, time, etc. An independent contractor can turn down work, make his own schedule, and work for multiple people. An independent pro wrestler is absolutely an independent contractor. A wrestler who is under contract to a company who gives the wrestler a schedule, tells them how to do their job, and doesn’t allow them to take more lucrative outside offers, sounds more like an employee.

The general rule is the person who the services are performed for (this would be the wrestling promotion) have the right to control or direct the results of the work but not the method of accomplishing the results.

What makes this a landmark case is that if this goes to court and pro wrestlers are designated as employees, they will be eligible for the same benefits that other company employees have, which include health insurance for their families and retirement funds.

The reason this has never been tested is because wrestlers never want to cross management of a major company, because they almost all hope a role will open and they can return. In addition, whether right or wrong, suing WWE is costly and can lead to a lot of mental anguish and the company will delay things if they feel they are losing to run up the clock on legal bills. While many wrestlers may have had valid gripes, few withstand the pressure of fighting WWE’s attorneys.

The most famous cases are Ventura himself, who won a judgment of more than $1 million for royalties of his voice being on many old videotapes that he didn’t get compensated for. It’s the reason why many WWE releases have commentary issues because in some cases, the company would rather erase Ventura’s voice than pay him royalties. But wrestlers of today all owe Ventura a lot of gratitude, because it’s why they get royalties on all tapes they appear on.

The other heavily publicized case, which WWE settled before going to court, was with Brock Lesnar on a non-compete. When Lesnar quit WWE in 2004 on a contract that lasted until 2010, he signed a release form agreeing to not do either pro wrestling, MMA or any form of sports entertainment until the end of his contract in 2010. The release was to allow him to tryout for the NFL, but to make sure he didn’t go to UFC or any pro wrestling group. Lesnar, without authorization from WWE, then made an appearance at a New Japan show at the Tokyo Dome, and later agreed to a contract with the organization. WWE sued him, but it was a case they were destined to lose. Even though Lesnar had signed a release specifically denying what he was doing, no court was going to hold up a worldwide non-compete nor that long of a time frame, which essentially would freeze him out of making a living in the two avenues he was probably best suited until what would be after his athletic prime. The settlement left Lesnar with no restrictions on what he wanted to do. But WWE prolonged the fight before the settlement, and someone who was not in as good shape financially may have had to fold under the economic pressure.

Still, the IRS has audited the company many times in the past, and has never ruled they are defrauding taxes by classifying wrestlers as independent contractors.

[Duckman]

I really hope this judgement goes in the favour of the wrestlers.  WWE is a publically traded company.  They now have an obligation towards not only the wrestlers but their share holders as well.  Which I think is the reason they've now raised this action.

It's shocking to think that these guys have no health insurance and basically no rights as workers, considering the danger they put themselves in and the money they draw for the company.

This is going to be a very interesting and potentially important case.

Peace

Duckman

[Ian "Wolfie" Trumps]

Well I guess if there is a right to health insurance that pretty much fucks the wrestlers in other respects. If I am McMahon and this rules against me, I merely put into the health insurance that injuries and such will only be treated in respect that no illegal substances have been taken or something to that degree.

They are rife with the likes of Roids as we know, but there is obviously coke and heroin addicts around WWE so...making that null and void for treatement if thats the case pretty much would see a lot of the guys opting out of it in my opinion.