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The Fair Labour Standards Act (FLSA) is used to set requirements for the employment of minors. Anyone under the age of 18 is considered a minor. As people age, constraints become more flexible and they have more opportunities to work. Even with this in mind, it`s easy to imagine a relationship where the minor doesn`t have to provide services or do anything, but only serves as an endorser, with the eSports organization simply paying the minor for the club. This seems to be the position of team 33 to explain its contractual relationship with the 8-year-old. Of course, even in a relationship as vaguely structured as this, the devil is in the details. The appearances or activities required or the conditions of an exclusive relationship may nevertheless tip the balance against the status of independent contractor. Finally, with regard to compliance with child labour laws, the distinction between independent contractor and employee may be of little importance. In states such as California and New York, child labor laws have been tailored specifically to child actors, and these specific laws are drafted in terms that would apply to employment or the provision of personal services by an independent contractor. Even if an eSports organization could reasonably establish an independent contractor relationship with a minor, it may still need to comply with various legal restrictions and requirements, including obtaining permits and how and when the minor can be hired (see the links above for more information on New York and California child labor laws).

A few years ago, my then 16-year-old niece received a Form 1099 from a dental office where she had been a housekeeper at night. Knowing what I was doing in terms of HUMAN RESOURCES, I asked the accountant who had sent her 1099 about the dubious practice of «renting» teenagers and then paying them as independent contractors. The Fair Labour Standards Act (FLSA) establishes wage, labour and safety requirements for minors (persons under the age of 18) who hold jobs covered by the law. The rules vary according to the age of the minor and the respective activity. As a general rule, the RSA sets the minimum age of employment at 14 and limits the number of hours worked by minors under the age of 16. But perhaps the biggest red flag was that she followed her hours and was paid every two weeks for the hours she worked. This is undoubtedly an employment situation, as independent contractors are paid by the work or project. Due to the history of agriculture in the United States, there are exceptions for miners working in agricultural occupations. Although the majority of the rules apply, there are several exceptions and concessions. These exclusions and allowances include: Some states prohibit minors under the age of 16 from working in establishments that offer alcohol. The history of agriculture in the United States is the reason why there are exceptions for miners working in agricultural occupations.

While most rules apply, there are more exceptions and allowances. These exemptions and allowances include: In recent years, the growth and maturity of eSports and the broader video game industry has been marked by convulsions of employment-related legal concerns, including discrimination based on illegal sex (and other forms of), as well as the sophistication (or lack thereof) of contracts used to hire gaming talent. Esports organizations are increasingly trying to build their brands and future teams through contractual relationships with minors. And although the proverbial little child can guide them in this regard, it still raises the question, for what purpose? Entering into business agreements with minors carries legal risks, and if these relationships are not created and managed proactively, given potentially applicable laws, an organization and the industry in general could be sitting on a powder keg. The Fair Labour Standards Act (FLSA) is used to set the conditions for hiring minors. Minors are persons under the age of 18. With age, restrictions decrease and offer more flexibility in work options. Does the misclassification of teenagers as independent contractors benefit from this? (My answer: yes.) Joking aside, Team 33`s decision drew attention to a long-standing and eternal question in the video game industry: how can eSports organizations legally hire or contract underage players (i.e.

under the age of 18)? There is no simple and short answer (see below), but the question seems to come first for many in the industry. In the latest Esports 2020 survey report (published by Foley & Lardner LLP and The Esports Observer), 68% of industry respondents believed that managing players «under the age of 18 and the corresponding complications of child labor law» were important legal issues for the industry. In fact, these issues have surprisingly raised more concerns than a variety of other labour and labour law issues, including the unlawful discrimination and harassment that (as noted here) has plagued the industry and its mostly online environment in the past. One of the weakest arguments for being an independent contractor (and one of the easiest ways to prove that an employer is circumventing the law) is to get employees to sign something. Employers are expected to know and comply with all labor laws – and if that overwhelms you, consider outsourcing your HR department. The IRS has established three categories of common law rules that define whether an employee is an independent contractor or an employee: Generally, minors do not have the legal capacity to enter into contracts, allowing them to refute contracts signed at any time while they are still minors or have reached the age of majority. If a parent or guardian co-signs, guarantees or approves the agreement, this will have no legal effect as the minor can yet confirm. Apparently, the entertainment industry has been annoyed to have so little contractual control over child actors. As a result, various states, including California and New York, have passed laws (primarily intended for the arts, entertainment, and sports) to allow for judicial approval or confirmation of contracts with a minor, making them effectively binding and enforceable on the minor (i.e., As if they were received by an adult).