Shielding Colleges from Lawsuits Over Student Athlete Compensation Limits
This law aims to protect colleges and athletic organizations from lawsuits challenging rules that restrict compensation paid to student athletes. It grants institutions legal immunity when enforcing rules that limit athlete pay, while still allowing them to provide academic stipends and cover educational costs. This limits the ability of student athletes to challenge compensation restrictions in court.
Key points
Colleges and athletic associations gain legal protection against all claims and lawsuits (including class actions) related to rules limiting student athletes' earnings.
The law allows institutions to continue covering educational costs (tuition, housing, health insurance) and providing academic stipends up to $5,980 annually without it being classified as 'compensation'.
The liability limitation also applies to rules that prohibit or restrict athletes from receiving compensation from third parties, including for the use of their Name, Image, and Likeness (NIL) rights.
Status:
Expired
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