Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES NEWS: Minor league ballplayers allege MLB violated federal and state unfair competition laws, (Jul 24, 2014)

By Linda O’Brien, J.D., LL.M.

Former Oakland Athletic pitcher Yadel Marti and other minor league baseball players allege that the Commissioner of Baseball and the major league baseball franchises have engaged in unfair business practices and unfair competition by failing to comply with minimum labor standards, according to a complaint filed in the federal district court of San Francisco (Marti v. Office of the Commissioner of Baseball, July 21, 2014).

The Office of the Commissioner of Baseball is an unincorporated association comprised of 30 major league baseball clubs and does business as Major League Baseball (MLB). MLB teams employ a small number of major league players on their active roster to perform at MLB stadiums and employ a high number of minor league players in their farm systems. Yadel Marti is former ballplayer in the minor league who was with the Oakland Athletics organization for two years.

The complaint claims that MLB rules require all teams to use the same uniform player contract when signing minor league players. In order to monopolize players and depress salaries, MLB inserted a reserve clause provision into players’ contracts that allows teams to retain contractual rights to players for seven championship seasons and restricts their ability to negotiate with other teams for the services and the compensation they receive. During that time, the teams may assign the players’ rights to another team or terminate the agreements at any time. The contract traps a player of a single organization and, by the expiration of the contract, much of the player’s value as a young prospect has expired because the player has aged.

Unlike players in the major league, minor league players have no union or collective bargaining agreement, even though they comprise the overwhelming majority of baseball players employed by the MLB. MLB is alleged to have artificially depressed minor league wages and exploited minor league players, by paying salaries below minimum wage and failing to pay overtime wages. Most minor league players earned between $3,000 and $7,500 for an entire year, despite routinely working 50 to 70 hours per week during the five-month championship season. They receive no overtime pay and routinely receive less the minimum wage during the championship season, the complaint charged.

According to the complaint, the defendants do not pay the minor league players during spring training, and during other training periods such as instructional leagues and winter training. Players are also required to maintain playing condition and weight during the off-season and to report for practice at times and places determined by the clubs or risk the imposition of a fine for failing to meet the requirements.

MLB attempted to gain a competitive advantage at the expense of the ballplayers by failing to comply with minimum labor standards, the complaint charges. Minor league players work long hours during the season – playing games six to seven days a week, participating in mandatory pre-game activities, and performing protracted travel – for which they receive no overtime pay. Additionally, players perform extensive work outside the season for which they earn no salary.

The complaint caption states the class action includes allegations of violations of federal antitrust laws. However, the complaint does not contain any causes of action setting forth claims for federal or state antitrust violations.

The plaintiffs assert claims for violations of California’s Unfair Competition Law and Fair Labor Standards Act. The action seeks injunctive relief, damages, pre- and post-judgment, costs of suit, attorneys’ fees, and any other just and proper relief.

The case is No. 4:14-cv-03289-KAW.

Attorneys: Samuel Kornhauser (Law Offices of Samuel Kornhauser) and Brian David (Law Offices of Brian David) for Vadel Marti, Edgardo Baez, Helder Velazquez, Jorge Jimenez, Jorge Minyety, Edwin Maysonet, and Jose Diaz.

Companies: Office of the Commissioner of Baseball

News: StateUnfairTradePractices Antitrust CaliforniaNews