The demand for minimum wage and class action against the CHL is resolved.
Official documents were filed in court on Friday, ending with a six-year skirmish debating whether WHL, OHL and QMJHL players are “employees” or “student athletes.”
CHL-wide executives rejected his comment, as did Charney Lawyers’ PC attorneys, who represented the plaintiffs. In an open letter, the CHL said the agreed settlement was for a total of $ 30 million and several sources say each CHL team will be liable to pay approximately $ 250,000 in damages. Some clubs can handle this more easily than others, but it’s not an insignificant amount at a time when the COVID-19 stop is wreaking havoc on companies around the world.
The total fee for the teams is about $ 15 million, the league and insurance cover the rest.
Open letter to the #CHL community:
We continue to focus on being the best major league in junior hockey development for our student amateur athletes.
READ: https://t.co/3un7lNuwTg pic.twitter.com/4EAzrF8eoU
– CanadianHockeyLeague (@CHLHockey) May 15, 2020
Those who played between 2010-19 were eligible to join the demand. It is not known how much each plaintiff will receive. In 2017, Dan Robson reported by Sportsnet that they were looking for “$ 180 million in wages, overtime, vacation pay, as well as punitive damages.”
The plaintiffs argued that the minor hockey contracts were an actual employment contract, which gave them the minimum wage and benefits described above. The CHL’s defense was that the players were student athletes and that their educational package, development, equipment, and off-ice programs exceeded what would be earned with the minimum wage.
As demand progressed, all Canadian provinces, along with the states of Michigan and Washington, exempted CHL players from the statutes of the employment rules. Alberta was the most recent to do so, as of January 1, 2020. This will prevent future lawsuits from being post-2019 players and sparked internal debate over whether or not to continue fighting this. demand.
There was a belief that provincial changes showed the CHL was on the right side of the law, but legal advice indicated the case could continue for another decade. That would cost millions and, according to sources, the insurance fund topped $ 30 million. Clearly, this was one of the main factors in deciding to resolve the case.