College athletes are no longer just playing for pride or scholarships—they are getting paid. With the NCAA’s evolving rules and recent litigation, student-athletes can now earn money from their name, image, and likeness (NIL). And for the first time, some are even receiving direct payments from their schools.

This shift does not just change the economics of college sports. It changes the legal framework around how we treat student-athletes—especially when it comes to workers’ compensation.

In New York, where the definition of “employee” is broad and the scope of workers’ compensation law is far-reaching, paid athletes may now qualify for benefits that were previously out of reach. That includes claims for injuries—even those that occur outside the state.

The NIL Era Briefly Explained

The NCAA began allowing NIL compensation in 2021, which opened the door for athletes to earn money from endorsements, social media, appearances, and other deals. Since then, NIL collectives and third-party sponsors have flourished. According to NCAA data, the average NIL deal yields approximately $21,000 per athlete, with a wide variation depending on the sport and athlete’s profile.

In 2024, things escalated further. As part of a multi-billion-dollar legal settlement, schools can directly pay athletes—up to $20.5 million annually per Division I program. These are no longer just scholarships; they are compensation for athletic services. And in workers’ compensation law, compensation is the operative word.

NIL Was a Gray Area. School Pay Is Not.

When NIL was limited to brand deals, there was room to argue that athletes were not employees. They were capitalizing on their likeness, not working for anyone. But now that schools themselves are writing checks, the relationship has changed.

Under the New York Workers’ Compensation Law, an employee is defined broadly as someone who performs work for another in exchange for compensation and under that party’s control. That can include part-time, seasonal, and even undocumented workers. The law is designed to err on the side of coverage.

So, when a school pays an athlete, requires their participation in games and practices, and maintains control over their schedule, it becomes difficult to argue that no employment relationship exists.

Who is the Employer?

That depends on the source of payment and the context of the injury. Here are three possible scenarios:

The School

When the athlete is paid directly by the university and injured during a practice, game, travel, or other sponsored events, the school is the employer.

The NIL Sponsor or Collective

If the injury occurs during a paid appearance or promotional shoot, the third-party sponsor may bear responsibility as the employer.

Both

Some athletes could be considered dual employees, depending on how much control each party exercises and the circumstances surrounding the injury.

New York Jurisdiction Reaches Far

What happens if an athlete is injured out of state? Or if the athlete has no formal ties to New York? The answer may still be New York has jurisdiction. New York courts and the Workers’ Compensation Board have consistently held that they can exercise jurisdiction over injuries that occur outside the state when there are “significant contacts” between the employment and the state of New York.

In Matter of Sanchez v. Clestra Cleanroom, Inc., 11 A.D. 781 (N.Y. App. Div., 3d Dep’t 2004), the court emphasized that it is not the employer’s location that matters, but the nature and location of the employment relationship. In addition, the court in Matter of Edick held that a contract requiring the employee to file in another state does not override New York jurisdiction when there are meaningful ties to New York.

Courts consider several factors:

• Where the athlete resides
• Where they were recruited or signed
• Whether the employer operates in New York
• Whether the athlete regularly returns to New York
• Or whether the injury occurred in New York

Bottom line: If there is a New York connection, there may be New York coverage—even if the injury happens in another state, or even if the athlete lives and plays elsewhere and the injury happens here. A college cannot avoid New York jurisdiction just by requiring its athletes to sign a contract selecting a different state’s law.

Injury Scenarios to Consider

To make this real, consider a few examples:

• A student-athlete from Westchester is recruited to play football at a university in Virginia. He lives in New York during summers and school breaks. He tears his ACL while conditioning during Thanksgiving break as required by the coach.— NY may assert jurisdiction.
• A college gymnast with a NIL deal from a New York athletic brand injures her wrist during a promotional event in New Jersey.—The sponsor may be liable under New York workers’ compensation law.
• A basketball player from Texas plays for Ole Miss. During a March Madness playoff game at Madison Square Garden, he suffers a concussion. He has no other ties to New York.—Because the injury occurred in New York, the Workers’ Compensation Board may still assert jurisdiction.

What Lawyers Should Do Next

If you represent claimants, institutions, or sponsors, this is an area worth tracking.

Here are some practical tips:

• Paid athletes must be treated like employees. If your client is a university or NIL collective, workers’ comp coverage should be part of the risk management discussion.
• Do not assume New York lacks jurisdiction just because the injury occurred out of state. Always check for relevant connections.
• Expect change. As more athletes receive salaries and more claims arise, we can expect to see new rulings and policy updates from the Workers’ Compensation Board.

This is a new and evolving area of law. Staying informed now will help avoid confusion and litigation later.

Final Thoughts

College athletics are no longer a purely amateur pursuit. Today’s student-athletes may be full-time students—but they are also workers, especially when compensation, control, and performance all overlap.

As these young athletes become paid performers, our legal systems must evolve to meet them where they are, not where they once were. New York’s legal framework is ready to address this.

Mary Ellen O’Connor, Esq., is the founding attorney of O’Connor Law PLLC, focusing on Workers’ Compensation and Social Security Disability. Based in Larchmont, NY, she represents injured workers throughout New York State. Contact: maryellen@nyworkerslaw.com | 929‑201‑5300

Resources

1. “College Athletes Are Getting Paid: Here’s What to Know”—Sports Illustrated, May 2024.

2. Matter of Sanchez v. Clestra Cleanroom, 11 A.D.3d 781 (N.Y. App. Div., 3d Dep’t 2004).

3. Matter of Nashko v. Standard Waterproofing Co., 4 N.Y.2d 199 (1958).

4. Matter of Edick v. Transcontinental Refrigerated Lines, Inc., 300 A.D.2d 848 (N.Y. App. Div., 3d Dep’t 2002).

5. New York Workers’ Compensation Law §2(7).