Major League Baseball and minor league players have agreed to settle a lawsuit regarding the violation of minimum wage labor laws.
According to an article on ESPN, the settlement terms are about to be filed in court. According to personnel aware of the deliberations, the settlement is within $200 million.
The lawsuit was filed in 2014 by retired players Aaron Senne, Michael Liberto, and Oliver Odle. The players alleged that Major League Baseball violated the federal Fair Labor Standards Act. They further claimed violations of state minimum wage and overtime requirements on 50-60 hours of an estimated workweek.
A letter has been filed with the U.S. District Court in San Francisco by the lawyers of both parties requesting Chief Magistrate Judge J. C. Spero to postpone the scheduled conference and the trial. The letter explained that the parties had reached a settlement and signed a confidential memorandum of understanding (MOU). The settlement is subject to the approval of the court. During pretrial held in March, Chief Magistrate Judge Spero ruled that the minor league players were considered year-round employees.
The players worked throughout the training period, and it was found Major League Baseball violated the Arizona state minimum wage law and is accountable for triple damages.
He further ruled that Major League Baseball was in non-compliance with the California wage requirements and awarded $1,882,650 in penalties.
The Judge stated that minor league players must receive their pay for traveling time to road games in the California League and practice time in Florida and Arizona.
Magistrate Judge Spero ruled that Major League Baseball is a joint employer with the teams of minor league players.
He further stated that these players carry out work during spring training, and traveling time in team buses to participate in games is compensable under the Fair Labor Standards Act, Arizona, and Florida law.
Moreover, traveling time for away games concerning California League players is compensable under California state law.
We at First Response are committed to providing the best professional services to your organization to create a workplace with equity.
Contact us now for more information!