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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
minimum wage; minor league baseball
Purpose
An emergency measure that exempts a minor league baseball player who is compensated pursuant to the terms of a collective bargaining agreement from the statutory minimum wage and recordkeeping requirements concerning hours worked. Contains requirements for enactment for initiatives and referendums (Proposition 105).
Background
Employment in Arizona is regulated by both federal and state law. Statute governs employment practices and working conditions, including requirements for payment of wages, minimum wage and employee benefits (A.R.S. Title 23, Chapter 2). An employer must maintain payroll records showing the hours worked each day and the wages paid to all employees for a period of four years. An employer's failure to maintain records raises a rebuttable presumption that the employer did not pay the required minimum wage rate. An employer's violation of recordkeeping requirements may be subject to civil penalties (A.R.S. § 23-364).
Statute requires an employer to designate two or more fixed paydays per month for the payment of wages to employees. An out-of-state employer may designate one or more fixed paydays to pay wages to: 1) professional, administrative or executive employees; 2) employees employed in the capacity of an outside salesman; and 3) employees employed in a supervisory capacity. The authorization for an out-of-state employer to pay employees on one or more fixed paydays does not apply to employees whose salaries are subject to provisions of a collective bargaining agreement (A.R.S. § 23-351).
In 2023, minor league baseball players ratified their first collective bargaining agreement, which governs salaries, medical and retirement benefits, housing and lodging, transportation, protections for injured or released players, impartial arbitration and due process (MLBPA).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Exempts an employee who is a minor league baseball player compensated pursuant to the terms of a collective bargaining agreement that expressly provides for employee wages and working conditions from the statutes governing minimum wage and any other minimum wage or recordkeeping requirements concerning hours worked, subject to the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
2. Allows an out-of-state employer to designate at least one fixed payday per month, rather than two or more fixed paydays per month, for employees who are minor league baseball players compensated under the terms of a collective bargaining agreement.
3. Makes technical changes.
4. Becomes effective on signature of the Governor, if the emergency clause is enacted.
Prepared by Senate Research
January 24, 2024
MG/cs