A bill that passed in the California State Assembly on May 29 could have significant implications on the definition of what constitutes an independent contractor in wrestling.
The bill, known as AB5, outlines the differences between what makes someone and employee or an independent contractor.
The bill is not specifically aimed at WWE or wrestling – although it would impact every US-based wrestling promotion with contracts – but also Uber drivers, manicurists and exotic dancers, among others.
The bill says that independent contractors – which is what WWE currently defines its wrestlers as – are “completely free of company control” and “doing work that is not a central part of company’s business.”
It would be very difficult to argue that WWE’s performers are independent contractors based on that criteria.
If WWE needs to reclassify its wrestlers as employees then they would be given a number of benefits, including paid parental leave, overtime pay, health care subsidies, workmen’s comp, unemployment insurance and labor protection.
This issue was actually touched upon by John Oliver during his famous anti-WWE rant in April and was previously subject of a lawsuit headed by former WWE, WCW and ECW wrestler Raven.
Subsequent studies conducted suggested that the cost to WWE of making its wrestlers employees would cost them around $22 million – a drop in the ocean for a company worth $6 billion.
The AB5 bill still needs to pass the state Senate and be signed into law but if that happens then WWE performers (and AEW and ROH wrestlers) would be considered employees on shows ran in California.
There is also a possibility that similar bills will be introduced in other states, which could lead to a long-overdue major overhaul in how wrestlers’ contracts work.
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