MLB to Pay $185 Million in Settlement with Minor League Players for Overtime and Minimum-Wage Violations

According to a California court document, Major League Baseball will pay $185 Million to settle a federal class-action lawsuit brought by minor league players seeking to have overtime and minimum wage violations paid by their teams. The settlement is pending approval by a California judge.

The suit was filed by Aaron Senne, a former Miami Marlins player in the minor leagues, and two other retired players three weeks before the trial was scheduled. The settlement will be shared with thousands of other players.

The suit, which alleged MLB teams had violated federal and state overtime and minimum-wage laws, was the first step in a continuing effort by minor league baseball players to improve their living standards. In October 2020, the United States Supreme Court rejected the league’s attempts to dismiss the class. The settlement prevented the league from sustaining even more potential damages.

Minor league players continue to earn below poverty line salaries after Congress passed a bill exempting them from overtime and federal minimum-wage laws in March 2018. Majority of the over 5,000 minor league players earn between $4,800 to $14,700 annually. Minor league players get paid only for the duration of their season.

These salaries are higher than previous wages. MLB implemented a new policy this season that requires teams to pay for lodging for their players at home. This is in addition to the previous policy. Minor league players continue their push for improvements. Senate Judiciary Committee leadership questioned Advocates for Minor Leaguers (a group advocating for changes) about how MLB’s antitrust exemption applies for them.

Senne v. MLB judge Joseph C. Spero awarded $1.88 million to the class in retaliation for the league’s failure to comply with California wage laws. The suit divides players into three groups: those who participated in spring or extended training in Florida beginning Feb. 7, 2009, and Cal League players starting Feb. 7, 2010, and players from Arizona spring and extended training after Feb. 7, 2011.

Spero wrote that minor league players were year-round employees in March. He stated: “These aren’t students who enrolled in a vocational college with the understanding they would perform services, regardless of compensation, as part the practical training necessary for the training and obtaining a license.”