H.R. 5812: Correcting Opportunity and Accountability in Collegiate Hiring Act (COACH Act)

This bill, titled the Correcting Opportunity and Accountability in Collegiate Hiring Act (COACH Act), proposes amendments to the Higher Education Act of 1965 regarding compensation for athletic department employees at institutions participating in federal student aid programs. Here are the main points of the bill:

Compensation Cap

The bill establishes a cap on the total annual compensation that any employee of an athletics department can receive. Specifically, this compensation cannot exceed 10 times the tuition and required fees for a first-time, full-time undergraduate student at the institution for the most recent academic year. This means that if a university’s tuition is $10,000, then no athletics department employee could be paid more than $100,000 in total annual compensation.

Buyouts and Separation Payments

Payments made to terminate or buy out employment agreements with athletics department employees will also count toward the compensation cap. This means that if a university pays a coach $150,000 to settle a contract, that amount will be included in assessing whether the university is meeting the compensation limits set by the bill.

Compliance and Certification

Institutions will be required to certify that they are complying with these compensation caps. This certification will be done annually as part of their program participation agreements for federal student aid. Additionally, institutions must publicly disclose the cap amount for the year, the tuition figure used to calculate it, and the number of employees whose compensation is close to the cap.

Exemptions for Existing Contracts

Existing employment contracts that were signed before the bill's enactment can continue until they end, but if any of those contracts are modified, they cannot exceed the compensation limits set by the bill. Future contracts entered into after the bill passes must comply with the new compensation rules.

Antitrust Considerations

The bill includes provisions to protect the agreements made under this law from antitrust lawsuits. It states that adopting or complying with these compensation rules will be deemed lawful under antitrust laws, offering institutions legal protection if they limit coach salaries as described in the bill.

Definitions

The bill provides specific definitions for terms used throughout the text. “Athletics department employee” includes various roles such as head coaches, assistant coaches, and athletic directors. “Total annual compensation” encompasses salaries, bonuses, severance payments, and other forms of compensation that may be provided or managed by related organizations.

Overall Purpose

The bill aims to ensure that the rising costs associated with athletics do not detract from the academic mission of colleges and universities, as well as to promote broader participation in athletic programs, including women’s and Olympic sports.

Relevant Companies

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