Whether or not a private organization is required to carry workers’ compensation insurance is critical for avoiding liability and the chances that you run afoul of state laws and regulations.
So, do sports leagues need workers’ compensation insurance? The question sits at the intersection of employment law, athlete classification, and financial risk. Don’t wait until an employee or athlete requires urgent medical help to find out.
Who Is Required to Have Workers’ Comp in California?
All employers in California must carry workers’ compensation insurance, even if they have only one employee. This includes full-time, part-time, and seasonal workers. Certain exemptions apply, such as for sole proprietors without employees, but most businesses are legally obligated to maintain coverage or face penalties, fines, and potential liability for workplace injuries.
Unique Considerations for California Athletes
When an athlete is injured on the job, there are unique considerations that don’t typically apply to standard work-related injuries. While basketball and football players are technically covered by the state’s workers’ compensation system, the injured athletes may also have private disability insurance policies that are negotiated through their contracts.
An injured athlete often seeks top-of-the-line medical treatments from doctors who focus on working with athletes. The state’s workers’ comp system is not designed to facilitate those types of treatments, which is why an athlete may rely on resources provided by their team rather than filing workers’ compensation claims.
Athletes often have contracts that protect their salaries in the event that they become injured. While workers’ compensation reimburses workers at two-thirds of their normal rate, athletes may rely on their private contractual agreements with their teams for protecting their salaries while they recover.
For coaches, trainers, and other support staff, however, workers’ compensation benefits may be the primary source of coverage for medical costs and income replacement following a work-related injury.
Understanding Workers’ Comp Statistics in California
California’s massive workforce and rich history of professional sports make it one of the most active states for workers’ compensation claims. Over 680,000 workers’ compensation claims are filed in the state each year.
With an estimated 16 million California workers covered under California’s mandatory system, employers and sports team owners face constant exposure to legal risk. California is home to five major league baseball teams, each with large staffs, year-round operations, and athlete injury risks.
Stadiums like Dodger Stadium in Los Angeles, Oracle Park in San Francisco, and Angel Stadium in Anaheim are workplaces under the law. The same complications that arise at smaller businesses can occur at training facilities and elsewhere when an injury leaves workers unsure of whether their claim qualifies for workers’ compensation.
The Lasting Impact of Assembly Bill 1309
Understanding whether athletes require workers’ compensation benefits became a complicated question in 2013 with the passage of Assembly Bill 1309. The bill that passed in 2013, later amended Labor Code § 3600.5, restricting out-of-state players from filing cumulative trauma claims in California, even if they played games in the state.
The problem came to a head when athletes who resided in California but worked out of state for other teams used California’s generous workers’ compensation programs to pay for complex medical procedures. Many of these workers’ compensation cases came from retired NFL and MLB players seeking treatment for long-term injuries.
Today, a workers’ compensation attorney defending a league or team must be well-versed in the lasting effects of workers’ compensation laws, especially when dealing with jurisdictional challenges. AB 1309 remains a central consideration in any workers’ compensation case involving professional athletes and long-term injuries.
FAQs
Q: Do Professional Sports Teams Offer Workers’ Compensation Coverage?
A: Yes, professional sports teams in California are generally required to carry workers’ compensation coverage for their athletes. This applies even though athletes are high-wage earners in a physically demanding profession. However, claims can be complex due to contractual agreements and jurisdictional issues. Employers often work with legal defense teams to properly address the unique challenges posed by athlete injury claims.
Q: Who Is Exempt from Workers’ Compensation Under California Law?
A: Certain categories of workers are exempt from California workers’ compensation laws, including independent contractors, some volunteers, and specific types of domestic workers. Sole proprietors without employees are generally not required to carry coverage. Businesses can face serious penalties if they do not carry workers’ comp when it is mandated. Legal counsel can help you learn about your responsibilities as a business owner.
Q: Are NFL Teams Required to Carry Workers’ Compensation Insurance in California?
A: Yes, NFL teams operating in California must provide workers’ compensation coverage for players injured while performing their duties. However, disputes may arise if the player was injured while traveling. Navigating a complex claim requires skill and legal counsel from a law firm with experience helping employers navigate workers’ comp disputes.
Q: Does the NBA Provide Workers’ Compensation Benefits to Injured Players?
A: NBA teams are required to comply with state workers’ compensation laws, including in California. Injured players can file claims for medical care and lost wages. Due to the high cost of care and the impact of missed games, workers’ compensation cases involving NBA athletes are often complex and involve legal representation on both sides.
Hire a Workers’ Compensation Lawyer from Bober, Peterson & Koby, LLP
Now that you know that sports teams are required to carry workers’ comp insurance, take the next step and work with a respected workers’ comp law firm that focuses on the needs of business and sports team owners.
Bober, Peterson & Koby, LLP is recognized for its leadership in workers’ compensation defense. Members of our firm have earned designations, such as Advanced Claims Professional, and have earned CLM Legal Claims Management certifications, and have been invited to speak at national industry conferences, including NCOIL and CLM.
Our attorneys’ work has been featured in The Wall Street Journal, Business Insurance Magazine, and multiple peer-reviewed legal publications. Contact our office today to schedule your consultation so we can provide your sports team with the legal counsel and clarity you need to move forward with confidence.
