Major League Baseball (MLB) agreed to pay $185 million to resolve claims it failed to pay minor league players minimum wages.
The settlement benefits individuals who participated in the California League for at least seven days between Feb. 7, 2010, and Aug. 25, 2022, participated in spring training, instructional leagues or extended spring training in Florida between Feb. 7, 2009, and Aug. 25, 2022, or in Arizona between Feb. 7, 2011, and Aug. 25, 2022, while signed to a Minor League uniform player contract before signing a Major League uniform player contract.
The settlement also includes a Fair Labor Standards Act (MONEY) collective of individuals who participated in the California League, spring training, extended spring training and/or instructional leagues after Feb. 7, 2011, who did not sign a Major League uniform player contract before then and who previously filed a timely opt in request.
Major League Baseball includes the best baseball players in the country — many of whom started as minor league players. Minor league players can be elevated to MLB teams to cover for injured players or due to their talent.
According to a wage-and-hour class action lawsuit, MLB failed to properly pay its minor league players for training and participation in certain leagues. Plaintiffs in the class action lawsuit say they aren’t paid minimum wage, do not get overtime pay and are sometimes forced to work off the clock.
MLB has not admitted any wrongdoing but agreed to a $185 million class action settlement to resolve these allegations. This includes a $1.74 million payment to the California Labor and Workforce Development Agency under PAGA.
Under the terms of the MLB pay settlement, class members can receive a cash payment from the net settlement fund.
Settlement payments will vary depending on the number of work periods each class member participated in. Work periods covered by the settlement include:
- Spring training, extended training and instructional league in Arizona from 2011 to 2022 or in Florida from 2009 to 2022
- The California League between 2010 and 2022
- Championship seasons outside the California League within the state’s applicable statute of limitations
Class members who participated in a higher number of these work periods are eligible for higher payments than those who participated in a small number of work periods. Players can check theirs estimated settlement payment amount on the settlement website after Nov. 14, 2022.
The settlement also included non-monetary benefits. The MLB agreed to rescind the portion of player contracts that prevents clubs from paying players wages outside of the championship season. The league will also inform clubs of this change and remind them that they must compensate minor league players appropriately under applicable state laws — including Arizona and Florida laws when players are working in the states for training.
The deadline for exclusion and objection is Dec. 27, 2022.
The final approval hearing for then MLB pay settlement is scheduled for Feb. 17, 2023.
No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits. However, class members have the option to update their address and elect to receive an electronic payment.