HF4952

Purpose

This bill aims to exclude certain workers from Minnesota minimum wage and overtime protections, with a focus on exempting minor league baseball players from these requirements. It would redefine who counts as an “employee” under Minnesota wage-and-hour law (Minnesota Statutes 2024 section 177.23 subdivision 7) to include a broad list of exemptions.

Main Provisions

• Amends Minnesota Statutes 2024 section 177.23 subdivision 7 to change the definition of “employee” by adding many exemptions.

• Among the exemptions, it would exclude from the employee definition:

  • A small number of agricultural workers on a farming unit who are paid under certain salary conditions (including rules about hours and pay).
  • Minors under 18 working in agriculture in specific situations (for example, if one or both parents or custodians are also working in the fields).
  • Minors employed as corn detasselers.
  • Staff who work seasonally for organized camps (summer or day camps).
  • Individuals in bona fide executive, administrative, or professional roles, or certain salespeople who do most sales off the employer’s premises.
  • People who provide services gratuitously for nonprofit organizations.
  • Elected officials or people who serve on government boards or similar bodies, or who provide gratuitous services to a political subdivision.
  • People employed by a political subdivision to provide police or fire protection, or employed by entities mainly providing those services.
  • Individuals who would be ineligible for membership in a public retirement system (PERA) under specific conditions.
  • Drivers in the taxi business.
  • Individuals who babysit as a sole practitioner.
  • People seasonal workers for carnivals, circuses, fairs, or ski facilities.
  • Minors under 18 working fewer than 20 hours per week for a municipality as part of a recreational program.
  • State employees who work as natural resource managers or conservation officers.
  • Positions covered by federal rules from the Department of Transportation (DOT) about qualifications and maximum hours of service.
  • Seafarers, defined with reference to federal law (including roles such as pilots, sailors, engineers, cooks, etc.).
  • Individuals employed by a county in a single-family residence owned by the county home school if the person supervises children as part of the residence duties.
  • Members of religious orders (nuns, monks, priests, etc.) who work in religious schools, hospitals, or other church-run institutions.
  • Anyone who has a contract to play baseball at the minor league level and is paid under a collective bargaining agreement that specifically provides for wages and working conditions.

• The bill's explicit focus is to exempt minor league baseball players from minimum wage and overtime protections by placing them under these exemptions.

Significant Changes to Existing Law

• Expands the list of exemptions to the “employee” definition used for minimum wage and overtime (177.23, subd. 7), meaning many workers would no longer be covered by Minnesota wage-and-hour protections.
• Specifically includes a provision that contracts under a minor league baseball collective bargaining agreement can override standard wage and hour requirements for players.

Implications

• For workers: Some groups, including most minor league baseball players, would no longer be guaranteed minimum wage and overtime protections under Minnesota law; pay and working conditions would be governed by the applicable exemptions and any applicable collective bargaining agreements.
• For employers and leagues: Payroll and labor compliance could rely on different rules and contract terms; potential need to review wage structures and agreements to ensure alignment with the exemptions.

Definitions and Cross-References

• The bill uses several cross-references to federal law and Minnesota law, including:
  • Federal overtime and worker classifications (seafarers under federal law; Department of Transportation rules; seafarer definitions).
  • Public employee retirement rules (PERA).
  • Provisions relating to minors, agriculture, and various categories (camps, nonprofits, government entities, religious organizations).

Practical Considerations

• Organizations employing workers in exempted categories should review how these exemptions apply to wages, hours, and contracts.
• Minor league baseball teams and players would need to rely on their CBA for wages and working conditions beyond Minnesota wage-and-hour protections.

Potential Concerns

• The broad exemptive scope could reduce wage protections for many workers.
• Interaction with federal labor standards and private agreements may raise questions about consistency and enforcement.

Relevant Terms - minimum wage - overtime - employee - Minnesota Statutes 2024 section 177.23 subdivision 7 - exempt/exemption - minor league baseball players - collective bargaining agreement - agriculture (farming unit, detasseler) - corn detasseler - seasonal camp staff - executive/administrative/professional - nonprofit organization - elected official / government board - police protection / fire protection - PERA (Public Employees Retirement Association) - Department of Transportation (DOT) and 49 U.S.C. 31502 - seafarer (federal definition) - carnival/circus/fair/ski facility (seasonal) - babysitting - recreation program (municipal) - religious orders and religious workers - county home school residence supervisor