According to a filing by Brian Kriegler, the players' damages expert, an early estimate is that approximately 23,000 players could share the money, with an average payment of $5,000 to $5,500. More precise totals will not be calculated until eligible players are notified.
The agreement, announced on May 10, was filed with the U.S. District Court in San Francisco on Friday. Chief Magistrate Judge Joseph C. Spero must approve the settlement, which is typical in this type of case.
"This settlement is a monumental step for minor league players toward a fair and just compensation system," Garrett Broshuis, a former minor league pitcher and the players' lead lawyer, said in a statement. "I've witnessed firsthand the financial difficulties that players face while earning poverty-level wages – or no wages at all – in pursuit of their major league dream."
If approved, $120,197,300 will be divided among the players, $55.5 million will go to the players' lawyers, and up to $5.5 million will be used to cover lawsuit reimbursement costs.
In addition, $450,000 will go toward settlement administration costs, $637,000 will go toward incentive awards for the player representatives in the suit, $400,000 will go toward a contingency fund, and $2,315,000 will go toward a payment under the California Private Attorney General Act, which allows penalties for violations of state labor code.
MLB informed the court that it did not object to the settlement being approved.
"We are only in the second year of a major overhaul of the century-old player development system and have made significant strides to improve the quality of life for minor league players," MLB said in a statement. "We are proud that minor league players already receive substantial benefits, such as free housing, quality health care, multiple meals per day, college tuition assistance for those who wish to further their education, and over $450 million in annual signing bonuses for first-year players."
"We are pleased that we were able to reach a mutually satisfactory resolution, but we cannot comment on the specifics until the agreement is formally approved by the court."
MLB agreed to remove any prohibitions on teams paying minor league players outside of the season as part of the proposed settlement.
"MLB will also issue a memorandum to the clubs informing them that they must compensate minor league players in accordance with wage-and-hour laws in effect in Arizona and Florida during spring training, extended spring training, instructional leagues, and the championship season in those states, including any minimum wage laws that apply," according to the proposed settlement.
The lawsuit was filed in 2014 by first baseman/outfielder Aaron Senne, a Marlins 10th-round pick in 2009 who retired in 2013, and two other retired players who were lower-round picks: Kansas City infielder Michael Liberto and San Francisco pitcher Oliver Odle. They claimed violations of the federal Fair Labor Standards Act, as well as state minimum wage and overtime requirements, for a work week that they estimated to be between 50 and 60 hours.
In a pretrial ruling issued in March, Spero stated that minor leaguers are year-round employees who work during training, and that MLB violated Arizona's state minimum wage law and was liable for triple damages. Spero also found MLB in violation of California wage statement requirements, imposing a $1,882,650 fine.
He believes minor leaguers should be compensated for time spent traveling to road games in the California League and practicing in Arizona and Florida.
"For decades, Major League Baseball's 30 team owners have openly conspired to underpay minor league baseball players," said Harry Marino, executive director of Advocates for Minor Leaguers. "Every year, players are required to provide between six and nine months of free labor." Today's settlement announcement acknowledges that injustice and represents an important first step toward redress."
Minor Leaguers advocates have urged Congress to investigate the treatment of minor leaguers and to further limit baseball's antitrust exemption. In March 2018, Congress passed legislation that stripped players of the federal minimum wage law's protection.
In 2017, the players suing were defined as those with minor league contracts who played in the California League for at least seven consecutive days beginning on February 7, 2010, or February 7, 2011, depending on state or federal claims; those who participated in spring training, extended spring training instructional leagues in Arizona beginning on February 7, 2011; and those who participated in spring training, extended spring training instructional leagues in Florida beginning on February 7, 2011.
The settlement specified how the legal fees were calculated.
The settlement stated, "A fee award of 30% of the common fund is reasonable given the risk class counsel took in bringing this novel wage-and-hour case, the effort they put into litigating the case for eight years through a lengthy appeal and until the eve of trial, and the excellent result achieved."