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

Hmmm, this could prove to be very interesting.

Wow, good for Raven. I actually think he may be on to something here.

I heard there were two other former WWE wrestlers involved in this suit but no one was named.

I'm sure WWE will be cringing thinking about their bottom line if the courts tell them to pony up and pay the piper...or the IRS, as the case may be. :rolleyes:

Well, they're in the midst of record profits (for 2007, at least) so I'm sure they can figure something out.

Yes I'm sure they can and I'm sure they will spend a lot of money trying to put a big stop to being labeled as an "employer".

I am surprised the IRS hasn't stepped in before now over the Independent Contractor stuff. The guidelines are fairly simple and I think WWE has been getting away with more than they should.

Well, it's just Vince protecting his business. Just like I don't blame Raven for doing something like this, I can't really blame Vince for trying to make as much as he possibly can. The fact that the business itself is built on carnies, stooging, and paranoia isn't really his fault as much as it is the locker rooms.