Rightly or wrongly, minor-league baseball teams believe the ongoing, class-action lawsuit over minor-league players’ wages presents something of an existential threat. As has been previously discussed here on a variety of occasions, the litigation contends, in short, that many minor league players’ salaries — which can run as low as $3,300 per year — violate the federal minimum wage and overtime laws.
Even though minor-league teams are not actually responsible for their players’ salaries — minor leaguers are instead paid by their respective major-league franchise — they still fear that a ruling in the players’ favor could be vitally injurious to their interests. As the argument goes, if major-league teams are forced to incur higher payroll costs, then they will likely cut back on other subsidies that they may currently provide to their minor-league partners.
Moreover, the minor leagues worry that, in some cases, MLB teams may potentially even decide to terminate their relationship with one or more of their minor-league affiliates in order to reduce costs. While most of the higher-level minor-league teams would likely survive such an scenario, the minor leagues fear that a victory for the players could spell doom for some of their lower-level franchises, especially those residing in particularly small metropolitan areas.
As a result, the minor leagues announced 18 months ago that they would petition Congress for relief, asking the legislature to pass a law protecting the industry from the federal minimum wage and maximum hour laws. A year and a half later, these efforts finally came to fruition, when a bill was introduced in the U.S. House of Representatives last week proposing to formally exclude minor-league baseball players from the federal minimum wage and overtime protections. Read the rest of this entry »