TO EXCLUDE CERTAIN MINOR LEAGUE BASEBALL PLAYERS FROM THE DEFINITION OF "EMPLOYEE" UNDER THE MINIMUM WAGE ACT OF THE STATE OF ARKANSAS IMPACTING THE LAW RESULTING FROM INITIATED ACT 5 OF 2018.

2025 Regular Session Introduced by Clint Penzo and 2 co-sponsors

Act 385 excludes certain minor league baseball players from Arkansas' Minimum Wage Act, impacting their wage protections and allowing teams more payroll flexibility.

Notification that HB1291 is now Act 385

Purpose and Intent

House Bill 1291, now known as Act 385, aims to amend the Minimum Wage Act of the State of Arkansas by excluding certain minor league baseball players from the definition of "employee." This change is intended to clarify the employment status of these players in relation to minimum wage laws, particularly in light of the provisions established by Initiated Act 5 of 2018.

Key Provisions

Exclusion from Employee Definition: The bill amends Arkansas Code § 11-4-203(3) to add a new subdivision that specifies:

An individual who plays at the minor league level and has a contract to play baseball.
The contract must be governed by a collective bargaining agreement that explicitly outlines wages and working conditions.

This provision effectively removes certain minor league baseball players from the protections offered under the Minimum Wage Act, thereby impacting their eligibility for minimum wage compensation.

Impact

Affected Parties: The primary group affected by this legislation includes minor league baseball players who are contracted under collective bargaining agreements. This change may have significant implications for their wages and working conditions, as they will no longer be classified as employees under the state’s minimum wage laws.

Broader Implications: The bill may also influence the operations of minor league baseball teams and their financial obligations regarding player compensation. By excluding these players from the employee definition, teams may have more flexibility in managing payroll and labor costs.

Legislative Timeline

Introduced: January 29, 2025

Amendments: The bill underwent an amendment process, with Amendment No. 1 adopted on February 24, 2025.

Passage: The bill was reported correctly engrossed on February 24, 2025, passed through both the House and Senate on March 18, 2025, and was subsequently enrolled and transmitted to the Governor's Office.

Final Status: The bill was officially enacted as Act 385 on March 20, 2025.

Conclusion

House Bill 1291 (Act 385) represents a significant legislative change regarding the employment status of minor league baseball players in Arkansas. By excluding these players from the definition of "employee" under the Minimum Wage Act, the bill alters their rights and protections concerning minimum wage, potentially affecting their compensation and working conditions.

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