U.S. Soccer Lawsuit: $24M Equal Pay Settlement, CBAs, and Federal Law

The USWNT equal pay lawsuit was a gender discrimination case brought by 28 members of the United States Women’s National Soccer Team against the U.S. Soccer Federation in March 2019, alleging violations of the Equal Pay Act and Title VII. It ended on February 22, 2022, with a $24 million settlement and led to new collective bargaining agreements that made U.S. Soccer the first national federation in the world to guarantee equal pay between its men’s and women’s teams.1U.S. Soccer. USSF Womens and Mens National Team Unions Agree to Historic Collective Bargaining Agreements

What the Players Alleged

The dispute began in 2016, when women’s team members asked the federation for bonuses matching what men received and were refused. U.S. Soccer’s position was that the women had negotiated a different collective bargaining agreement, one that traded the men’s “pay-to-play” bonus structure for guaranteed salaries and benefits.2Boston University. Equal Pay US Womens National Soccer Alex Morgan, Megan Rapinoe, Carli Lloyd, and Becky Sauerbrunn filed EEOC charges that April.3EEOC. Morgan v. USSF Amicus Brief

On March 8, 2019 — International Women’s Day — 28 players filed Morgan v. United States Soccer Federation, Inc. in the Central District of California. The complaint alleged institutionalized gender discrimination in both compensation and working conditions, covering pay rates, travel accommodations, medical and training support, and playing surfaces.4Taylor & Francis Online. USWNT Equal Pay Analysis Jeffrey Kessler of Winston & Strawn led the players’ case, arguing that a separate CBA is not a defense to unequal pay and pointing to audited financials showing the women’s team had generated more revenue than the men’s team in years where the categories could be separated.5Forbes. Jeffrey Kessler USWNT and Their Fight for Equal Pay

The 2020 Ruling That Nearly Ended the Case

On May 1, 2020, U.S. District Judge R. Gary Klausner granted partial summary judgment for the federation on the equal pay claims. He calculated that between 2015 and 2019 the women played 111 games and earned $24.5 million (about $220,747 per game), while the men played 87 games and earned $18.5 million (about $212,639 per game). On those totals, the women had earned more.3EEOC. Morgan v. USSF Amicus Brief

Klausner reasoned that comparing bonus rates alone, while ignoring the guaranteed salaries, health insurance, and severance the women received and the men did not, would itself distort the Equal Pay Act’s definition of wages. He noted the women had explicitly rejected a pay-to-play model during CBA negotiations.6Northeastern University Law Review. Pack Baker Heere

Not everything was dismissed. Claims about unequal travel, hotels, and medical and training support survived and were headed for trial. The turf-versus-grass claim was dismissed after the court accepted the federation’s stated reasons for its field choices.7Employment Law Worldview. U.S. Womens National Soccer Teams Equal Pay Act Claim Dismissed but Other Gender Based Claims Remain8Oklahoma Bar Journal. Morgan v. United States Soccer Federation Inc.

The Filing That Cost the Federation President His Job

Two months before the summary judgment ruling, U.S. Soccer’s own court filings triggered a crisis. In March 2020, briefs submitted by the federation’s lawyers argued that playing on the men’s team required more “skill” and “responsibility” than playing on the women’s team and invoked “indisputable science” to claim women’s players were physically inferior.9The New York Times. Carlos Cordeiro Resigns as US Soccer President

Players wore their training jerseys inside out during a SheBelieves Cup match against Japan in protest. Rapinoe called the arguments “blatant misogyny and sexism.” Coca-Cola, Visa, Volkswagen, and Deloitte publicly criticized the federation. MLS Commissioner Don Garber and other board members condemned the filings.10ESPN. US Soccer President Carlos Cordeiro Steps Down Amid USWNT Pay Dispute Federation president Carlos Cordeiro resigned, said he had not reviewed the filings before submission, and apologized. Vice president Cindy Parlow Cone, a former national team player, replaced him.11Business Insider. USWNT Equal Pay Backlash Leads to Carlos Cordeiro USSF Resignation

How the Case Got Revived

In December 2020, the players reached a partial settlement on working conditions, securing equal treatment for travel, hotels, and support services.12Forbes. The EEOC Backs US Womens Soccer Teams Pay Discrimination Case The pay claims went up on appeal to the Ninth Circuit in April 2021, with an opening brief filed that July.13Appellate.net. Morgan v. USSF Appellants Opening Brief

The EEOC filed an amicus brief supporting the players. The agency’s central argument: under the Equal Pay Act, the comparison is the rate of pay, not total compensation. The players’ expert had calculated that they would have earned roughly $64 million more under the men’s CBA terms. If women had to play and win more games to reach the same totals, the lower underlying rate still violated the statute.3EEOC. Morgan v. USSF Amicus Brief Oral argument was scheduled for March 7, 2022. It never happened. On February 22, 2022, the parties filed a joint motion to stay the appeal and announced a settlement.14Bloomberg Law. Pay Gap Persists Even as Womens Soccer Scores Big Settlement

The $24 Million Settlement

The deal totaled $24 million. Of that, $22 million was a lump sum for distribution among current and former players, most of it back pay. The remaining $2 million funded post-career goals and charitable work in women’s and girls’ soccer, with individual players eligible to apply for up to $50,000.15The New York Times. US Womens Soccer Equal Pay16ESPN. USWNT US Soccer Federation Settle Equal Pay Lawsuit

The payment was contingent on ratification of a new collective bargaining agreement. U.S. Soccer agreed to pay the $22 million in four equal installments, with the first due June 1, 2022, into an escrow account managed by class counsel. Judge Klausner set a final approval hearing for December 5, 2022.

The Equal-Pay CBAs

In May 2022, U.S. Soccer and the players’ unions for both national teams ratified new CBAs running through 2028. The men’s and women’s teams remained under separate agreements, but the economic terms were identical, and U.S. Soccer became the first federation in the world to guarantee equal pay across both teams.1U.S. Soccer. USSF Womens and Mens National Team Unions Agree to Historic Collective Bargaining Agreements

The centerpiece was a World Cup prize money pool. Because FIFA pays vastly less for the Women’s World Cup than the Men’s, U.S. Soccer agreed to pool a portion of whatever FIFA awards for each World Cup and split it equally between the men’s and women’s rosters. The system covered the 2022 Men’s and 2023 Women’s tournaments and applies again in 2026 and 2027.

The rest of the equalization covered friendly matches (identical appearance fees and performance bonuses), official competitions (identical game fees and bonuses), commercial revenue (a 50/50 split of broadcast, partner, and sponsorship revenue plus shared home-match ticket revenue), and benefits (401(k) matching up to 5% of compensation, childcare at camps and matches, and health insurance, parental leave, and injury protections for selected women’s team players).

The women gave something up to get equal rates. They lost their guaranteed salaries, and U.S. Soccer stopped paying their NWSL club salaries. Both teams now operate on a game-by-game pay model, at the same rates.17CBS Sports. USWNT USMNT Unions Agree Equal Pay CBAs With USSF

The Federal Law It Produced

On January 5, 2023, President Joe Biden signed the Equal Pay for Team USA Act. The law requires the U.S. Olympic and Paralympic Committee and every National Governing Body to provide equivalent compensation, benefits, medical care, and travel to female and male athletes representing the United States in international competition.18GovInfo. Equal Pay for Team USA Act of 2022

Differences based on merit, performance, seniority, or the need to develop underfunded programs are permitted. NGBs must report annually to Congress on compliance, with data broken down by gender and race, and compliance is a condition of continued certification. The USOPC and NGBs must also advocate to international federations for equal prizes and support.19Congress.gov. Equal Pay for Team USA Act of 2022

What the Settlement Didn’t Fix

The CBAs equalize what U.S. Soccer controls. They don’t equalize what FIFA pays. The Women’s World Cup prize pool rose from $15 million in 2015 to $110 million in 2023, but the 2022 Men’s World Cup pool was $440 million.20Equalizer Soccer. Womens World Cup Prize Money Increases FIFA president Gianni Infantino has stated an aim of equal prize money by the 2026 and 2027 tournaments, but there is no binding commitment. The global players’ union FIFPRO has set a 2027 target of its own.21Springer. FIFA Prize Money Equalization Analysis The U.S. pooling mechanism cushions American players against that gap; it does not close it.