Florida and California have recently passed laws exempting minor league baseball players from their states' minimum wage, overtime, and recordkeeping laws. This move follows a $185 million settlement in a class action lawsuit filed by minor league players in 2015, alleging violations of federal and state wage-hour laws.
In response to ongoing wage and hour concerns, Major League Baseball (MLB) and the Major League Baseball Players Association (MLBPA) negotiated the first-ever collective bargaining agreement for minor league players in April 2023. The agreement focused on improving core economic rights and benefits for players, including increased minimum annual salaries ranging from $19,800 to $35,800.
Despite these improvements, the pay and benefits may not fully comply with state wage and hour laws, such as minimum wage requirements and overtime pay. To address these issues, MLB and the Players Association are seeking further exemptions from wage and hour laws through joint lobbying efforts.
The collective bargaining agreement includes provisions for MLB to reopen negotiations if a court or arbitrator deems the compensation illegal. Both parties aim to resolve any concerns internally to maintain the benefits outlined in the agreement.
Following the CBA, MLB and the Players Association have been lobbying state legislators for exemptions from wage and hour laws. Florida and California were the initial targets due to their significant baseball presence, and Arizona is currently under consideration. However, the proposed legislation in Arizona has faced opposition from legislators citing concerns about undermining the state's minimum wage laws.
While the outcome of the proposed legislation remains uncertain, MLB and the MLBPA are committed to advocating for exemptions that align with the terms of the collective bargaining agreement and their mutual interest in resolving labor disputes internally.
