BREAKING NEWS: Scott Levy files lawsuit challenging WWE classification of wrestlers as independent contractors, rather than employees
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Posted on 8/08/108 by Bob Magee
Dave Meltzer reports what may well be a story of major significance this afternoon. It seems that every webasite around missed a major story.
In its quarterly report, WWE acknowledged a lawsuit by Scott Levy, professionally known as Raven (and previously within WWF as Johnny Polo). It challenges one of the most controversial aspects of the promotion-wrestler relationship between major companies in recent years such as WCW and WWE...the issue of whether or not wrestlers are truly employees or independent contractors.
The excerpt in the 10-Q filing by WWE reads as follows:
"Levy et al. On July 24, 2008, we were served with a summons from three of our former talent purporting to be on behalf of themselves and a class of similarly situated persons. The lawsuit alleges breach of contract and unjust enrichment arising from our treating them as independent contractors rather than employees, which the plaintiffs allege is an erroneous classification.
We have not formally responded to the suit but intend to deny any liability for claims asserted against us and to defend vigorously against the suit."
WWE and all wrestling companies claim that wrestlers are independent contractors, rather than acknowledging that they are leghally an employer.
Employers typically withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee.
If the lawsuit determines in favor of Levy, it would have gigantic financial ramifications upon WWE.
Original article/Wrestling Observer.com
