Former AEW talent Kevin Kelly and the Tate Twins have filed a lawsuit against AEW and media personality Ian Riccaboni in a civil court in Philadelphia, Pennsylvania. The lawsuit alleges that the performers were misclassified as employees and are actually independent contractors.
Kevin Foote (known as Kevin Kelly) was a television commentator for Ring of Honor which is owned by AEW. The Tate Twins (formerly known as The Boys in ROH) appeared in AEW but mainly performed in Ring of Honor.
The plaintiffs signed a Talent Agreement with AEW of which ROH is described as a subsidiary. The Agreement requires the talent to provide services only to AEW and/or precludes talent from providing services to other pro wrestling companies without AEW approval. A portion of the redacted copy of the lawsuit states that talent could not challenge the validity of the Agreement.
Kelly and the Tate Twins were terminated due to “budget cuts” per the lawsuit.
For the Tate Twins, Khan indicated at a press event that they did show up for events which was the reason for their release.
The causes of action relate to their termination. This includes alleging that the arbitration clause found in their Talent Agreements was invalid.
The Arbitration Clause, like most, means that any legal disputes must be referred to arbitration rather than through filing a lawsuit. There are obvious pros and cons with going to arbitration versus going to trial. But in this case, the plaintiffs are arguing that the clause is void.
Specifically, plaintiffs argue that the Arbitration Agreement does not contain a severability clause. They were also given a “take it or leave it” deal thus the agreements were “unconscionable and unenforceable.” They also claim that the Arbitration location is in Florida per the Agreement although the residents are in Pennsylvania and Tennessee.
In addition to voiding the Arbitration Clause, the plaintiffs are seeking a Declaratory Judgment (order from the Court) that plaintiffs are employees of AEW. The argument, similar to those in most misclassification cases, claim that the plaintiffs are controlled by AEW with “every aspect of the relationship” as well as restricting them from working outside of the company without prior approval.
The lawsuit alleges:
The misclassification of Talent and Wrestlers as independent contractors deprives the Plaintiffs and those similarly situated of the benefits of being classified as an employee, including, but not limited to, workers’ compensation benefits, health insurance, payments by AEW for social security and Medicare, protection under the Fair Labor Standards Act, and/or protection under state and federal anti-discrimination laws
The plaintiffs also requesting that a redacted “restrictive covenant” in the Agreement is unenforceable. Since the lawsuit is redacted, the reader cannot discern the clause in the contract.
The lawsuit also includes a defamation claim against AEW/ROH announcer Ian Riccaboni by Kevin Kelly. In addition, there is one by the Tate Brothers against Tony Khan related to the issue of the brothers missing appearances for the company.
Payout Perspective:
There’s a lot to unpack with the lawsuit but the first issue deals with civil procedure. Essentially, where the lawsuit is being filed. The plaintiffs filed the lawsuit in state court in Philadelphia, Pennsylvania because in part that is where Khan allegedly made the defamatory statements against the Tate Brothers. However, AEW is a Delaware corporation that has its main business in Florida. Thus, it would follow that AEW and Khan would argue that this case should be heard in Florida. Usually lawsuits are filed where the defendant resides but they also could be filed where the alleged action took place. So, there’s at least a slight argument that it should stay in Pennsylvania.
Regardless of the jurisdiction and venue, there have been some lawsuits brought by wrestlers where they have claimed that they were employees of the company and not independent contractors. Notably, Scott Levy (“Raven”) and Bill Edie (“Demolition Ax”) brought lawsuits against WWE claiming that they were employees of the company. Also of note, Leslie Smith filed a case with the National Labor Relations Board against the UFC claiming that she was being treated as an employee of the company. The lawsuit goes over the multiple steps considered when determining whether an individual is a contractor or an employee. And while many of the steps seem to fall in favor of the worker, a court has rarely ruled in favor of them.
The lawsuit seems fact specific so it is hard for me to think that this case would be a class action lawsuit outside from the claim that the performers should be considered employees. Also, the number of alleged affected class members is about 216 which may not be enough to consider big enough for a class action. It is worth noting that while AEW talent have been able to work independent dates for various promotions, the lawsuit claims that the wrestler must get approval from AEW which is not indicative of an independent contractor.
The defamation cases are somewhat hard to decipher and one would need to hear the defense prior to determining whether or not there is a real claim.
MPO will keep you posted.
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