Retired NFL players’ blitz throws union for a big loss — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Retired NFL players’ blitz throws union for a big loss

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Usually, employers get zapped when employees sue, but that isn’t always so. Sometimes the union that represents employees gets slapped with a huge penalty, too—especially if it neglected to look out for workers’ interests.

Recent case: A federal jury in San Francisco has ordered the National Football League Players Association (NFLPA) to pay $28.1 million to a class of more than 2,000 former NFL players, finding that the union did not properly market the players’ images or pay out licensing revenue.

The jury in the U.S. District Court for the Northern District of California said that the NFLPA acted contrary to the interests of retired players and violated its fiduciary obligations when it failed to pay retired players shares of licensing revenue from deals negotiated by the union, including video games. (Parrish v. National Football League Players Inc., No. 07-cv-00943, ND CA, 2008)

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