Big Story - WWE being investigated for its classification of wrestlers as
independent contractors
Sep 14, 2010 - 12:08:49 PM
By James Caldwell, Torch assistant editor
WWE confirmed to Connecticut investigative reporter Brian Lockhart today
that the company is being investigated for its classification of talent and
workers as independent contractors.
The audit by the Connecticut Department of Labor includes a review of WWE,
which is based in Stamford, Conn., classifying wrestlers and
behind-the-scenes TV production workers as independent contractors rather
than employees.
The timing is part of the story. The audit comes on the heels of U.S.
president Barack Obama stating earlier this year that one of his key issues
would be cracking down on businesses mis-classifying workers as independent
contractors. Former WWE CEO Linda McMahon's opponent in the U.S. Senate
race, Richard Blumenthal, has also echoed Obama's plans.
Last week, the issue of independent contractor vs. employee classification
came to the forefront when a Yale law professor addressed the issue in-depth
during a Democratic-sponsored conference call. He called the classification
of WWE wrestlers as independent contractors "immoral" and stated he does not
believe it would hold up in a court of law.
WWE spokesman Robert Zimmerman responded to the investigation today,
attempting to make it a political issue due to the timing of McMahon
competing against Blumenthal in the U.S. Senate race.
"WWE has always complied with the law. Up until this election, WWE has not
been fined nor investigated in the past for independent contractor
classification. However, curiously the state of Connecticut is currently
conducting an audit of WWE's classification of independent contractors. WWE
constantly reviews its internal practices and procedures to comply with
ever-changing employee laws."
Zimmerman added: "The average WWE performer earns more than $550,000
annually, while only wrestling less than three days per week. WWE covers 100
percent of all costs associated with any in-ring related injuries and
rehabilitation."
Caldwell's Analysis: This has potential to be a big game-changer, depending
on what the audit committee finds, discovers, concludes, etc. We don't know
the behind-the-scenes timing of when the Dept. of Labor decided to
investigate, but I believe the reason why it's suddenly come to the
forefront is because of Linda McMahon's campaign. It's the law of unintended
consequences where McMahon's Senate run has brought a lot of wrestler health
& treatment issues to the forefront as reporters have examined her
professional record and business practices, which is essentially her only
qualification to run for Senator.
As for WWE's statement, how much WWE talent earns has absolutely nothing to
do with independent contractor vs. employee classification. The top 10
percent in WWE are making over $1.0 million to raise that annual average,
which is irrelevant anyways. "Wrestling less than three days per week," is
misleading, as it fails to take into consideration the full-time WWE
schedule where talent are on the road year-round with no break.
WWE covering rehabilitation cost is an indirect indictment of the system. It
shouldn't get that point where they need to cover "rehabilitation" costs
when talent are destined to break down mentally and physically being on the
road 52 weeks out of the year with no off-season. Also, the "wrestling less
than three days" statement doesn't take into consideration travel days
in-between dates. Wrestlers can't recover physically as part of their
training to stay in shape to appear on TV, especially with the increased
number of international dates and tours.
http://pwtorch.com/artman2/publish/WWE_News_3/article_43765.shtml
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