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Every since my first steps into the MX industry I have been told that Racers are Independent Contractors. As a business owner myself I have looked into hiring Independent Contractors and the rules are very specific to what is and is not considered and Independent Contractor.
Do these rules also apply to Professional Athletes/Racers?
Two scenarios
1. When I first started in this industry a TM for a factory team was looking to hire me on as the Team Athletic Trainer/Strength Coach. The TM has set aside the money and things where looking good until the Owner stepped in and said it was a NOGO because the riders being Independent Contractors could not be told by the team how to train, when to train or be who to see for evaluation and treatment of injuries.
2. Fast forward 15 years and now you have a situation where you have riders A&B training with a Trainer and both riders get picked up by a factory teams. Riders are told that the team has a TEAM TRAINER/RIDING COACH and that they the riders MUST pay for a portion of the Trainers/Riding Coaches salary and PAY BONUSES to said Trainer/Riding Coach. Both riders for monetary reasons can't afford to pay two trainers so they terminate their deal with current Trainer to pay for Team Trainer/Riding Coach.
I can understand if the team has the Trainer/Riding Coach on salary such as with most major athletic teams having Strength and Conditioning and Sport Medicine staff.
I know of a rider who rode for a factory team that was told he needed to pay a portion of the Team Trainers salary. The riders portion was half of his salary.
I am sure teams use the Independent Contractor status to avoid having to pay the additional costs associated with hiring employees.
Having worked with MLB players if they get injured they can go on Work Comp to pay for therapy which sounds crazy.
Not looking for legal advise just thoughts on the matter.
Do these rules also apply to Professional Athletes/Racers?
Two scenarios
1. When I first started in this industry a TM for a factory team was looking to hire me on as the Team Athletic Trainer/Strength Coach. The TM has set aside the money and things where looking good until the Owner stepped in and said it was a NOGO because the riders being Independent Contractors could not be told by the team how to train, when to train or be who to see for evaluation and treatment of injuries.
2. Fast forward 15 years and now you have a situation where you have riders A&B training with a Trainer and both riders get picked up by a factory teams. Riders are told that the team has a TEAM TRAINER/RIDING COACH and that they the riders MUST pay for a portion of the Trainers/Riding Coaches salary and PAY BONUSES to said Trainer/Riding Coach. Both riders for monetary reasons can't afford to pay two trainers so they terminate their deal with current Trainer to pay for Team Trainer/Riding Coach.
I can understand if the team has the Trainer/Riding Coach on salary such as with most major athletic teams having Strength and Conditioning and Sport Medicine staff.
I know of a rider who rode for a factory team that was told he needed to pay a portion of the Team Trainers salary. The riders portion was half of his salary.
I am sure teams use the Independent Contractor status to avoid having to pay the additional costs associated with hiring employees.
Having worked with MLB players if they get injured they can go on Work Comp to pay for therapy which sounds crazy.
Not looking for legal advise just thoughts on the matter.
Not an attorney, but as far as I know the rules apply to everybody. There are some situations where the parties can elect to treat themselves as independent even though the guidelines would indicate an employer/employee relationship.
http://www.edd.ca.gov/uibdg/Total_and_Partial_Unemployment_TPU_4154.htm
The trainer scenario certainly muddies the water
The Shop
I am not a lawyer but have dealt with this on a first hand basis in another industry and I stay at Holiday Inn. Duhhrr!
If a top rider made $500,000 salary
I don't see workers compensation costing less than $100,000 but I'm just a dummy typing from the couch.
As an independent contractor they should be able to buy occupational accident insurance for a lot less money. About $2000 a year in my case vs over $8000 if I was an employee.
The 2 questions they asked first were:
1. Did the independent contractor bring their own tools/equipment (computer/medical supplies/actual tools) to do the job?
2. Did the independent contractor set their own hours, and were they free to come and go?
As far as I can tell a motocross racer On a team doesn't bring anything besides their talent and experience. Their bikes are provided, their gear is provided.
And they don't really set their schedule, if the team is testing they need to be there, if there is a race they need to be there, if there is an autograph signing they need to be there.
Could be a sticky situation if someone wants to press the issue.
Like Kirk mentioned above, they don't supply their own "tools" and they also aren't allowed to ride other brands of motorcycles. If you are truly independent, you can work for as many different companies as you want, as long as you are able to fulfill the terms of your arrangement with each company.
I think this article, Employee vs. Independent Contractor: Differences You Need to Know, provides a good overview of some of the factors that are being discussed.
While this issue is "squishy," in my opinion (and this is NOT legal advice), if you consider the true character of the principal (e.g, American Honda Motor Co., Inc.), the riders appear to be more like independent contractors than employees. For example, pet stores, like American Honda, are in the business of selling products. If a pet store were to hire bears (bears!) to ride in circles on bicycles in the parking lot for the sole purpose of promoting the pet store business, the bears would look, in my opinion, a lot like independent contractors. The bears don't manufacture the products sold in the store, nor do they participate in transactions to distribute them; the bears are simply hired for advertising purposes.
Another interesting thing I thought of while reading it is that an independent contractor should be easily identifiable as a contractor and not as an employee of the company. Yet, as an example with a TV broadcast and even the posters the riders sign, you have the teams claim they are "America Honda's Ken Roczen" when really he's "Roczen Racing LLC's Ken Roczen".
Edit: my example may be wrong if JBlain619 is right about Honda having their rides be employees.
Although, I have no idea what team is making riders go to a specific trainer.
What if the pet store had an in house bear trainer and it was written in the contract that the bears had to use and would also have to pay for the services of the store bear trainer?
What if the bears were told that the pet store will be providing the equipment for them to perform their duties ie. bicycles. The pet store limits the equipment to only what the pet store provides for riders to choose from.
What if the bears are free to use whatever uniform they want but all markings and placement of logos must first be approved by the pet store.
A lot of what ifs but from all the links people have been posting it looks like riders fall into the employee category.
That would be like saying I am gonna hire you to do a job but your gonna need to see this guy to prepare you to do your job. Oh and by the way you need to pay him for his services.
Pit Row
For 150 bucks I know what I can get from a "trainer".
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