Bills
| 3.23.22

Do Minor League Baseball Players Need to be Exempt From Overtime and Minimum Wage Rules? (H.R. 5580)

Do you support or oppose this bill?

What is H.R. 5580?

(Updated September 10, 2017)

This bill would clarify that minor league baseball players are exempt from minimum wage and overtime rules in response to a class-action lawsuit filed against Major League Baseball (MLB) seeking compensation by minor league ballplayers. Because major league baseball franchises pay the salaries of their minor league players, this legislation only applies to players who are covered by a minor league contract.

The lawsuit seeks to extend minimum wage and overtime rules to minor league baseball players and increase their pay, and is expected to go to trial in February 2017. It was filed against MLB because those franchises serve as the parent club for their minor league affiliates, which are responsible for developing players who hope to eventually make it to the “Big Leagues.”

Most major league organizations have between five and eight minor leagues clubs competing in the different tiers of minor league baseball (Rookie ball is the lowest, and AAA is the highest). Each minor league team typically has about 25 players on their roster, meaning that an average minor league “farm system” has around 160 players in it.

Argument in favor

Minor league baseball players receive signing bonuses with their initial contracts and are paid salaries during the season. Forcing baseball franchises to pay them overtime and an off-season minimum wage could cause teams to shut down in communities where minor league baseball is the only pro sport in town.

Argument opposed

These baseball players typically have to work in excess of 40 hours per week during the season, so they need compensated for that on top of their monthly salaries. Not only that, but minor league ballplayers don’t get paid for the time they spend working at their craft in the offseason and that should change.

Impact

Minor league baseball players; and baseball clubs at the major and minor league level.

Cost of H.R. 5580

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Brett Guthrie (R-KY) introduced this bill to ensure that minor league baseball teams and their major league affiliates don’t suddenly face an increase in costs from a requirement to pay minor league ballplayers overtime and a minimum wage. Guthrie has expressed concern that would have a negative impact on the communities that host minor league baseball teams if parent clubs decide to cut costs:

“Minor League Baseball is a beloved game in communities across America, including Bowling Green, Louisville, and Lexington, Kentucky. The game provides an affordable, family-friendly environment while bringing revenue to host cities and contributing to broader economic development. Furthermore, the Minor Leagues offer the best opportunity for players to pursue their dream of one day playing in the Big Leagues, as several local players have done over the years.”

This legislation has drawn fierce criticism from people who are advocating that minor leaguers deserve to be paid more, given that their Major League parent organizations are part of an over $9 billion industry. The bill’s detractors say that parent clubs would need to keep minor league teams around despite a pay increase if they want to continue to develop talented prospects. Garrett Broshuis, a former minor league ballplayer and an attorney representing the plaintiffs in their suit against MLB, offered this critique about the bill:

“It’s despicable. You have billionaire major league owners working with millionaire minor league owners to add to their pockets more, and at the same time you have minor leaguers who are making below the poverty wage. You’re talking about a group of guys whose salaries start at $1,100 per month, and they’re only paid during the season. They’re not paid during spring training. They’re not paid during instructional leagues.”


Of Note: Minor league baseball players are paid signing bonuses when they’re selected in baseball’s draft or recruited from overseas and sign their first contract, but after that their monthly salaries are relatively low. Based on what tier of the minor league farm system a player is at, their monthly pay could range from $1,150 to $2,700 per month during their season, plus additional money for travel, though if a player makes the parent club’s 40-man roster their pay increases further.

To help out their ballplayers, minor league clubs can arrange reduced-cost housing for them with host families, while Major League clubs will often pay for some of the education costs their minor league players incur in the offseason if they take courses at a college or university.



Media:

Summary by Eric Revell

(Photo Credit: Flickr user Savil95)