A document filed in California court Friday states that Major League Baseball will pay $185 million to settle the federal class-action lawsuit filed by minor league players who sought pay for minimum- wage and overtime violations by teams.
The case was settled three weeks before it was to go to trial. Thousands of other players will be eligible to receive a portion of the $120 million due to them.
Minor league players can be paid during spring training in Florida and Arizona as part of the settlement. The teams were previously blocked from doing that.
The attorney who spearheaded the suit said that the settlement was a monumental step towards a fair and just compensation system. I've seen first-hand the financial struggle players face while earning poverty-level wages -- or no wages at all -- in pursuit of their major league dream. It has been my honor to help lead this fight and shine a light on the unfair labor practices that have long plagued America's pastime.
The first significant volley in an ongoing effort by minor league players to improve their standards of living, the suit alleged MLB teams violated federal and state minimum- wage and overtime laws The league's attempt to dismiss the class in October 2020 was denied by the Supreme Court.
Congress passed a bill in March of last year that exempts minor league players from minimum wage and overtime laws. The majority of the players in the minor league make between 5000 and 15000 a year. Minor league players don't get paid much during the season.
Past wages were increased by the salaries. After they previously were responsible for it, MLB implemented a new policy that requires teams to cover lodging for players. The Senate Judiciary Committee leadership inquired with Advocates for Minor Leaguers about how MLB's antitrust exemption applies to minor league players.
Major League Baseball has made great strides to improve the quality of life for minor league players in the second year of a major change to the player development system. Minor league players receive a number of benefits, including free housing, quality health care, multiple meals per day, college tuition assistance for those who wish to continue their education, and over $450 million in annual signing bonuses for first year players. We are happy that we were able to come to a mutually agreeable resolution, but we can't comment on the details until the agreement is approved by the court.
The judge in the case awarded the class over $1 million for the league's lack of compliance. The suit divides the class into three groups: players who participated in spring training or extended spring training in Florida.
In March, Spero wrote that minor league players are year-round employees, not seasonal employees as the league claimed.
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