MLB: Congress Introduces Bill to “Save” Minor League Baseball

Minor League Baseball announced on Wednesday that Congress has introduced legislation designed to exempt MLB from federal labor laws, including minimum wage and overtime pay requirements.

In a big win for MLB, Representatives Cheri Bustos (D-Ill.) and Brett Guthrie (R-Ky.) introduced the so-called “Save America’s Pastime Act”, which would exempt minor league teams from minimum wage and overtime pay laws.

In a press release, MiLB threw their full support behind the bill. President and CEO Pat O’Connor had this to say about the legislation:

“For over 115 years, Minor League Baseball has been a staple of American communities, large and small, and with the help of Congressman Guthrie, Congresswoman Bustos and other members of Congress, it will remain so for years to come.”

So, you may be wondering – why exactly does Congress need to “save” baseball’s minor leagues?

In 2014, former MiLB pitcher and current attorney Garrett Broshuis filed a lawsuit against Major League Baseball and its teams in U.S. District Court in San Francisco. It has escalated into a class action suit that could eventually involve thousands of current and former players. The suit alleges that minor league players are entitled to minimum wage and overtime pay, according to the Fair Labor Standards Act of 1938.

For those who haven’t heard of it, the FLSA is a set of labor laws that affect most hourly employees. However, certain types of jobs are “exempt” – meaning that those employers are not required to pay overtime or meet minimum wage guidelines. Broshuis’s lawsuit argues that minor league baseball is not one of those “exempt” categories.

MiLB has argued that the jobs of minor leaguers are similar to many other exempt jobs, and should be included. Players are in an apprenticeship of sorts, honing their skills for a much higher-paying job in the majors. MiLB also claims that minor league employees are seasonal employees, since the baseball season only lasts a few months (although that’s debatable, given the strongly-encouraged offseason training that most players must do).

This bill would legally give them that “exempt” status, protecting them from Broshuis and his class action suit. In the process, it would hurt already-underpaid minor league players.

Currently, federal minimum wage is $7.25. That means a full-time minimum wage employee earns $1,160 per month. In his lawsuit, Broshuis pointed out that players’ average monthly salaries in the minors range from $1,100 per month in rookie ball to $2,150 in Triple-A. Most players make less than $7,500 each season, and many have to work second or third jobs in the offseason just to get by.

Compared to the estimated $9 billion that MLB made in revenue last season, it’s easy to see why Broshuis and other players would be upset. Minor leaguers aren’t part of the players’ union, meaning the Collective Bargaining Agreement doesn’t protect them – they’re at the mercy of the major league teams.

MiLB argues that if this bill doesn’t pass in Congress and Broshuis’ lawsuit is successful, it could mean the end to baseball’s player development system as we know it.

Gary Ulmer, president of the Louisville Bats (the Triple-A team of the Cincinnati Reds) had this to say:

“Should the California litigation be successful, teams like the Louisville Bats, Bowling Green Hot Rods and Lexington Legends may well disappear, along with a source of wholesome entertainment for Kentucky families, and an economic generator for those cities.”

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That sounds dramatic, but the logic behind Ulmer’s statement is flawed. This legislation revolves around minor league pay – something that comes out of the MLB parent club’s budget. Teams like the Bats don’t have to worry about salaries, because the Cincinnati Reds are responsible for that. It’s hard to make a case for how an increase in pay to the players would put a strain on the minor league clubs and owners.

Increasing the pay for 25+ players on six levels of teams within each organization will be a big hit to the profit margins of big league clubs, but it isn’t impossible. If teams want a high-quality major league product, they have to invest in their minor league system. They cannot simply eliminate their player development structure as they are threatening to do.

There are plenty of reasons to advocate for minor league players to earn more. While fans may only see the players for three hours or so during the game, their days are much longer – often far beyond a regular eight-hour day. Players also only receive a handful of days off each month, and spend hours traveling by bus for road games. Why shouldn’t they be paid minimum wage for their work?

ESPN’s Keith Law vehemently opposed the bill on Twitter, going so far as to encourage fans to call their representatives and speak out against the bill.

Keith Law’s points are valid – the owners can afford to pay their minor league players a fair wage, but they actively choose not to in order to capitalize on those who are willing to accept less in order to chase their dreams of being a major league star. If this bill passes, the law will be on their side.

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While MiLB’s statements reflect a sense of desperation and a true need for this legislation, it’s mostly just hype designed to scare fans into thinking this bill must pass to “save” the game. Instead of trying to create a loophole for themselves through Congress, MLB should just do the right thing and pay their players a fair wage.