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Major League Baseball has agreed to pay $185 million in a settlement to end a federal class-action lawsuit filed by minor-league players who were seeking compensation for minimum-wage and overtime violations, according to ESPN's Jeff Passan. The settlement is pending a judge's approval.
Passan adds that the settlement will stipulate that MLB issues a memo to teams allowing them to pay minor-league players during spring training, extended spring training and instructional league play. Teams had not been permitted to pay players during those periods.
The lawsuit was filed by Aaron Senne and 42 other minor-league players in 2014 on the basis of the belief that MLB had violated the Fair Labor Standards Act. As a website for the lawsuit notes, the players made the following contentions about which state wage and hour laws MLB violated:
minimum wage, overtime and other remedies available under California law on behalf of the California Class;
minimum wage under Arizona law on behalf of the Arizona Class; and
minimum wage under Florida law on behalf of the Florida Class.
The Athletic's Evan Drellich originally reported that the two sides had reached a settlement in May. Terms were not revealed at that time, however, and the plaintiffs had requested until July 11 to "file motion for preliminary approval of settlement."
The players' counsel issued the following statement at the time: "We are pleased to report that the parties have reached a settlement in principle...
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