A potential legal bombshell could be on its way and cause huge headaches for the WWE.
They are not the one involved in the lawsuit but it does target the legal status of an "independent contractor" when used by companies who don't allow all the legal rights associated with independent contractors and purposely avoid following all labor laws and regulations associated with employees.
In the past, whenever someone seriously threatened to challenge this in court in regards to the no compete clause, WWE caved in every time to their demands.
If I remember correctly, WWE flirted with a union forming in the 80s or early 90s till Hogan snitched and managed to derail the whole process.
Quote:
What could be a major game changer story for UFC, and inevitably if it is in UFC, will be with WWE, is that Leslie Smith’s filing of a complaint to the National Labor Relations Board may also include a ruling as to whether UFC fighters are employees or independent contractors.
The board, as part of its ruling on her complaint, would have to make a determination which category fighters fit into. The NLRB can’t go to bat or rule in cases involving independent contractors. Smith is claiming that UFC violated federal law that protects employees who engage in union activities by the nature of releasing her.
UFC used a sleight of hand as they never released her, as her contract expired and they opted not to sign her to a new contract even though she’s won her past two fights and her third fight saw her opponent miss weight and she didn’t fight. She was also ranked No. 9 in her weight class at the time they opted to not offer her a new deal and she was known for having exciting fights.
It’s not a secret why she was let go. But the NLRB can’t rule on it if she’s an independent contractor, meaning that ruling will be sped up.
If that ruling comes down that fighters are employees, that will almost inevitably carry over to WWE, which has far more control over its performances and over careers than UFC does
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