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Minimum Wage Newsbeat

Monday, August 31, 2015

Appellate court sides with MLB in minimum wage lawsuit

The district court granted MLB an initial victory in the Chen case last year, determining that FanFest was not subject to the FLSA and therefore was immune from the federal minimum wage and overtime requirements. Now, in a recent decision issued earlier this month, MLB has scored yet another victory with the Second Circuit Court of Appeals affirming the trial court’s finding that the FLSA does not apply to FanFest.

However, while the Chen decision certainly represents an important decision with respect to the rights of FanFest volunteers, the appellate court’s recent opinion appears unlikely to have a significant impact on the other minimum-wage lawsuits pending against the league. Therefore, the various lawsuits challenging both MLB’s minor league and scout pay practices remain very much alive despite the recent rulings in the FanFest case.

The appellate court based its recent decision in the FanFest case on a relatively obscure provision in the FLSA, Section 213(a)(3), which states that seasonal “amusement or recreational establishments” — typically those that operate seven months or less per year — are not subject to the law’s minimum wage or overtime provisions.

In particular, MLB had argued that the 2013 FanFest at issue in the case qualified as a seasonal establishment under Section 213(a)(e) since it lasted five days, and clearly provided patrons with amusement or recreational services. Thus, MLB argued, FanFest was immune from the FLSA’s minimum wage and overtime requirements.

 

RoyalsRetro (AG#1F) Posted: August 31, 2015 at 03:41 PM | 6 comment(s)
  Beats: fair pay, fanfest, labor laws, lawsuit, legal, minimum wage, minor leagues

 

 

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