A California federal district court denied a motion on July 13 by 22 Major League Baseball franchises to dismiss a lawsuit by former minor league baseball players. The lawsuit alleges that the franchises have not been paying former minor league baseball players minimum wage and overtime pay in violation of applicable state and federal law.
The lawsuit claims that the franchises violated the Fair Labor Standards Act by paying them under minimum wage, forcing them to work overtime without pay and train during the off-season without being paid. The motion was a preliminary matter, contesting that the court had proper personal jurisdiction over the franchises and that the plaintiffs had proper standing. The court is delaying the determination on standing until after discovery. The franchises have not shared their legal defense strategy. However, it is possible that they may argue that the baseball players are exempt from coverage under the Fair Labor Standards Act. They may claim that the franchises are establishments that provide seasonal or recreational amusement, which are defined by the number of months they operate or the amount of revenue they receive during a certain part of the calendar year in comparison to the remainder of the year.