Major League Baseball executives and the MLB Players Association want Arizona lawmakers to pass a bill exempting minor league players from the state’s minimum wage law.
Last March, MLB and the players union agreed to the first ever collective bargaining agreement for minor leaguers. That deal included increased pay; subsidized housing and healthcare; and retirement benefits.
Steve Gonzalez, general counsel for MLB, said certain reporting requirements included in state law are at odds with how minor league baseball operates. He says minor league players are unique compared to other workers covered by the law, because they regularly review game tape, exercise and take other steps to improve their performance on their own time – activities that are difficult to track.
That is why Rep. Leo Biasiucci (R-Lake Havasu) sponsored House Bill 2197, which would exempt minor league baseball players working under a collective bargaining agreement from minimum wage and recording requirements included in the Arizona Minimum Wage Act that was approved by voters in 2016.
The bill passed through the Arizona House’s Commerce Committee on a party-line vote with no Democratic support after LUCHA, a progressive group that backed that law on the ballot in 2016, came out against the bill.
LUCHA lobbyist Hugo Polanco said Biasiucci’s bill would undermine the law and open the door for other industries to seek similar exemptions. He accused MLB of trying to avoid paying players the minimum wage.
But Gonzalez argued that was not the case, citing benefits within the collective bargaining agreement that go beyond what is required under state law.
“I would submit that the parties’ negotiated structure furthers the purpose of the Arizona Minimum Wage Act, because it’s ensuring that minor league players achieve the level of compensation and standard of living intended by the act,” he said.
Whether or not the bill “furthers the purpose” of the voter-approved minimum wage law is a critical distrinction, because that will determine whether it violates statutory protections blocking lawmakers from undermining voter-approved laws.
“We’ve spoken with our attorney, who asserts this bill would face direct legal challenges, because it does not further the purpose of voter-protected and enacted language, which again, passed by a large margin with Republican and Democratic voters,” Polanco said.
But Republicans pointed out that the players themselves support the bill, citing a letter co-signed by MLB Players Association Executive Director Tony Clark urging lawmakers to pass the bill.
They also expressed concern that a failure to act could jeopardize the Cactus League, the spring training league that takes place in Arizona every year that added $418.5 million to Arizona’s GDP last year.
“That’s a big deal, and we’re one of two states that have this,” Rep. Justin Wilmeth (R-Phoenix) said.
And Gonzalez said Democrats in other states have already shown support.
Earlier this year, California lawmakers unanimously passed a narrow exemption to that state’s labor laws to facilitate the new collective bargaining agreement.
But Polanco said the fact that Arizona’s law was approved by voters means extra care should be taken before lawmakers act to approve an exemption.
“We believe that any bill that would chip away at these protections should draw special scrutiny from this body,” he said.
Polanco said he would be open to meeting with the parties to discuss the legislation further, but he did not see a path forward that would win LUCHA’s support. Democrats on the House’s Commerce, who all voted against the bill, were more open to compromise.
Rep. Cesar Aguilar (D-Phoenix) urged LUCHA and MLB to meet with the bill drafters and said he could support a modified bill in the future.
“If the meeting can happen and I’m told the language is okay, I am willing to support the bill on the floor,” he said, referring to the final vote that will take place in the future on the House floor.
