NWSL Faces Grievance Over New Compensation Rule

The National Women’s Soccer League (NWSL) has announced the implementation of the new “High Impact Player (HIP) Rule,” which permits teams to exceed the salary cap by up to $1 million for designated players who meet specific criteria established by the league’s board.

On Wednesday, the National Women’s Soccer League Players Association (NWSLPA) filed a grievance against the league, asserting that the introduction of the HIP Rule contravenes the terms of the collective bargaining agreement (CBA) and violates federal labor law.

This grievance marks the second such filing by the NWSLPA; the first concerned the situation involving Trinity Rodman. The league had rejected a contract between Rodman and the Washington Spirit, thereby preventing an agreed-upon solution that would allow her to remain in the NWSL following the expiration of her contract on December 31, which has left her a free agent.

In its grievance, the NWSLPA contends that the NWSL’s dismissal of the agreement between Rodman and the Spirit constitutes a “flagrant violation” of her rights as a free agent and contravenes at least five sections of the CBA.

Meghann Burke, Executive Director of the NWSLPA, stated, “This was a unilateral decision by the League to change how a Player’s fair market value is evaluated. We agree that increasing investment in Player compensation is essential to maintaining competitiveness in the global labor market. However, the solution should be straightforward and collectively bargained by raising the salary cap. The League cannot create a parallel pay system outside the salary cap that was never negotiated, subsequently limiting access to compensation through criteria controlled by the League that may exclude certain Players.”

The NWSLPA is seeking the immediate rescission of the HIP Rule, an order mandating the League to engage in good faith bargaining regarding any proposed player compensation rules prior to their implementation, and restitution for any affected Players due to the League’s unilateral actions.

This grievance was filed in accordance with Article 18 of the Collective Bargaining Agreement.

Tori Huster, Deputy Executive Director of the NWSLPA, emphasized, “We agree that increasing investment in Players is crucial for the league’s future. However, meaningful progress requires a transparent, collaborative process that includes Players. This is essential for building a market that is both stable and equitable.”

In response, a spokesperson for the NWSL stated to ESPN, “We disagree with the NWSLPA’s assertions that challenge the NWSL’s ability to implement the HIP Rule. The NWSL has fully complied with the CBA and federal law, and we will defend these positions throughout the collectively-bargained grievance process.”

As stipulated by the CBA, the NWSL is obligated to provide a written response—either sustaining or denying the union’s grievance in the initial case—an obligation it must also fulfill for the latest grievance.

The next steps involve the grievance committee reviewing the matter, which will include one representative from the league and one from the NWSLPA. Should a resolution not be reached, the matter will proceed to arbitration.

The league has 14 days from the date of any players’ association grievance filing to respond, and the initial grievance regarding Rodman’s situation has an extended deadline. The latest grievance, submitted on January 12, must be addressed in writing by January 26.