SF5004

Purpose

This bill changes who is considered an “employee” under Minnesota wage and hour laws. It adds a specific exemption for minor league baseball players who sign a contract to play at the minor league level and are paid under a collective bargaining agreement that sets wages and working conditions. In short, it aims to exclude those players from minimum wage and overtime protections, by updating the statute that defines “employee.”

Main Provisions

• Amends Minnesota Statutes 2024, section 177.23, subdivision 7 to redefine “Employee.” The definition now includes a broad list of exemptions—groups of people who are not treated as employees for wage-and-hour purposes.
• Key new exemption: any individual who has entered into a contract to play baseball at the minor league level and who is compensated under a collective bargaining agreement (CBA) that expressly provides for wages and working conditions.
• The bill retains many other exemptions from the employee definition, such as:
  • Certain farm workers and agricultural workers
  • Executives, administrators, professionals, or certain on-premises sales staff
  • Volunteers for nonprofit organizations
  • Elected officials and certain government workers
  • Police or fire protection staff for political subdivisions
  • Taxi drivers, babysitters (solos), and certain seasonal workers (e.g., carnival, circus, ski facility)
  • Seafarers and other specific categories outlined in the list
• Overall effect: the bill broadens and codifies exemptions, with the minor league baseball exemption focusing on players under a CBA that sets wages and working conditions.

Effects and Implications

• Creates a specific carve-out that removes minimum wage and overtime protections for minor league baseball players who are paid under a CBA that defines wages and working conditions.
• May reduce wage protections for that group, while leaving other workers’ protections intact or subject to other exemptions.
• The change is limited to those players meeting the CBA condition; other workers, including minor leaguers not covered by such an agreement, may still be subject to minimum wage and overtime rules.

Significant Changes to Existing Law

• Rewrites the definition of “Employee” in Minn. Stat. § 177.23, subd. 7 to include the minor league baseball players exemption.
• Aligns with other listed exemptions by creating a comprehensive, explicit roster of categories that are not treated as employees for wage-and-hour purposes.

Relevant Terms - minor league baseball players - collective bargaining agreement (CBA) - wages and working conditions - minimum wage - overtime - employee (as defined by Minnesota law) - Minnesota Statutes 2024 section 177.23 subdivision 7 - exemptions (to the employee definition) - contract to play baseball at the minor league level