Here Comes the FIFA World Cup – And Why Wage and Hour Law Figures Into Almost Everything!
“There is no systematic corruption in FIFA. That is nonsense. We are financially clean and clear."
—Sepp Blatter
I finally get to blog about a sports issue!
Bloomberg Law ‘s Daily Labor Report had an interesting blog this week on the FIFA World Cup and wage and hour enforcement. See Punching In: Labor Departments Prepare Employers for World Cup. FIFA -- besides pandering to President Trump with its FIFA “Peace Prize “ -- is also dubiously infamous for turning a blind eye to labor standard abuses and leaving a trail of exploited workers behind in the countries where it has held prior World Cup tournaments. It is a well-known situation, which has received a good deal of press, particularly because of the prior tournament events in Qatar, and has darkened the reputation of the organization.
Now, with this summer’s World Cup coming to North America, it “presents an excellent opportunity for businesses and workers to welcome fans from all over the world,” according to acting Labor Secretary Keith Sonderling, See Department of Labor to offer compliance assistance for employers in US cities hosting 2026 World Cup | U.S. Department of Labor. He went on to say in a statement. “Employers and their representatives can and should take advantage of the many free resources we provide to ensure workers receive all they are owed and that their businesses compete on a level playing field.” Id. And if you mess up, DOL urged employers to use the revived Payroll Audit Independent Determination (“PAID”) program, which permits employers to self-report wage violations in exchange for limited immunity from certain penalties and department litigation. So our doors are open for international soccer (or football) business, with a gateway for forgiveness if you don’t pay your workers right.
The Bloomberg blog was triggered by the posting by the US Department of Labor of a supposed guide for companies in US cities that are hosting FIFA World Cup games this summer. As Bloomberg characterized it, this is another signal the agency is leaning toward compliance assistance rather than enforcement.”
If you want to look at the DOL portal for wage and hour compliance go to Compliance Assistance | U.S. Department of Labor. However, there is really nothing new there. It is old wine in a new bottle. The resources there include links to a compliance assistance portal, existing informational publications on applicable wage and hour laws, and contact information for the agency’s regional offices for employers in the restaurant and hospitality industries.
Apparently, according again to Bloomberg, “this is the first World Cup where FIFA agreed to integrate a human rights framework to guide the host cities in the US, Canada, and Mexico in abiding by labor standards before and during the competition.” My own guess is that FIFA might want to focus more effort on Mexico if they really care about wage and hour issues and are not merely window dressing.
Anyhow, I know some of the World Cup events are scheduled for Seattle, WA, where I have a second home, and my wife and I have decided to steer clear of during the tournament to avoid the crowds. I read in today’s Wall Street Journal that they are dynamic pricing tickets and it can cost just under $1,000 for a single ticket in the mid-tier seat for the Seattle game. Not worth it in my opinion. I don’t see any reason to enrich FIFA. They made enough royalty money off of me in the Electronic Arts era when my kids purchased their video games.
Notably, Washington State has some of the highest minimum wage laws in the nation, both state and local, and has released its own informational webpages on state labor standards and how to report violations. Bloomberg notes that Washington’s Attorney General “said in a press release last week that the state’s Department of Labor & Industries, and Seattle’s Office of Labor Standards would work together to ensure rapid response to labor complaints and enforcement of the law in ‘’high violation industries.” Of course, there is no PAID program under the state law.