Waivers must be secured before certain types of transactions can be completed.
There are two types of waivers (release waivers and assignment waivers), and while there is only one type of release waiver (Outright Release), there are three different types of assignment waivers (Trade Assignment, Optional Assignment, and Outright Assignment). Each type of waivers has a special set of rules that apply.
The MLB waiver list is transmitted at 2 PM (Eastern) every business day. Every day is an MLB business day during Spring Training and the MLB Regular Season, but because Saturday and Sunday are not considered MLB business days during the off-season, the MLB waiver list is transmitted at 2 PM (Eastern) Monday through Friday (only) during the off-season.
If a club requests a waiver prior to the 2 PM (Eastern) deadline, the waiver request is transmitted that day. If the waiver is requested after 2 PM, the waiver request will not be transmitted until the next business day. A player remains on waivers for two business days, during which time any of the other 29 MLB clubs can make a claim. At 1 PM on the second business day after the waivers are requested the MLB office determines if any claims were made, and if so, which club is awarded the claim.
A club can place no more than seven players on assignment waivers (Trade, Optional, and/or Outright) per day, and a club can make a maximum of 50 assignment waiver claims per week.
A player on a Disabled List cannot be placed on Trade Assignment Waivers or Optional Assignment Waivers until he is eligible to be reinstated from the DL.
A player on a Disabled List cannot be placed on Outright Assignment Waivers until he is both eligible to be reinstated from the DL and healthy enough to play.
Neither assignment waivers nor release waivers can be requested on a player while he is on the Bereavement List, Military List, Suspended List, Disqualified List, or Ineligible List.
Outright Release Waivers (but NOT assignment waivers) may be requested on a player while he is on the Voluntary Retired List.
The procedure for awarding waiver claims is different depending on the type of waivers and the time of the year.
For Optional Assignment Waivers, Outright Waivers, and Release Waivers, if a player is claimed by only one club, that club is awarded the claim. If more than one club makes a claim, the club with the lowest winning percentage (regardless of league) on the day the player clears waivers is awarded the claim. If two clubs with the same winning percentage make a claim, the club in the player's own league is awarded the claim. If two clubs from the same league make a claim and they are tied in the standings, the club with the lowest winning percentage from the previous season is awarded the claim. If the clubs are still tied, standings from two years back (or three years back, four years back, etc) are used to break the tie.
However, in the case of Trade Waivers (only), if a player is claimed by more than one club, the club in the player's own league with the lowest winning percentage is awarded the claim, even if that club has a higher winning percentage than the club or clubs making a claim from the other league. So a player placed on Trade Assignment Waivers must first be "waived out of his own league" before he can be assigned to a club in the other league.
For the purpose of determining the awarding of waivers claims, the previous season's standings are used during the off-season and up through the first 30 days of the following season. Then beginning on the 31st day of the season, the standings as of the date the player clears waivers are used to determine the awarding of waiver claims, with the previous season's standings used to break any ties.
A club is not permitted to make a waiver claim and then trade the player to another club if the purpose of the claim was to prevent a third club from being awarded the waiver claim. (A waiver claim that is judged to have been made for this purpose will be revoked).
The deadline for "non-waiver" (unrestricted) trades is 4 PM (EDT) on July 31st. Beginning on August 1st and extending through to the conclusion of the MLB regular season, Trade Assignment Waivers must be secured before players on MLB 40-man rosters can be traded. (Waivers are never required to trade players on minor league reserve lists).
If a player is placed on Trade Waivers and is not claimed, waivers are said to be "secured" and the player can be traded to any MLB club at any time, just like prior to the non-waiver trade deadline.
Trade Assignment Waivers are revocable, so if a player is claimed, the player's club has the option to either withdraw the waiver request and retain the player, or allow the waiver claim to stand. The player's club has 48 hours to make this decision, and during this "window" the club has the right to trade the player to the claiming club (but ONLY to the claiming club). If a trade cannot be worked-out with the claiming club before the window closes, and the club chooses not to withdraw the waiver request, the player is automatically assigned to the claiming club for the $20,000 waiver price ($25,000 for Draft-Excluded and Rule 5 players) and the claiming club assumes 100% of the player's contract. (A player with "no trade" rights can refuse both a waiver claim and a trade assignment, however).
If a player is claimed but not traded and the waiver request is subsequently withdrawn, the player cannot be placed on Trade Assignment Waivers again for at least 30 days from the date the waivers are withdrawn, and if the player is placed on Trade Waivers again before the end of the season, the waivers become irrevocable and cannot be withdrawn. A player who has "no trade" rights (full or partial) cannot be placed on Trade Assignment Waivers a second time before the end of the season unless the player first waives his "no trade" rights.
Trade Assignment Waivers secured on a player on Optional Assignment to the minors or on an MLB Disabled List expire after 72 hours.
If a player on an MLB or minor league Disabled List is placed on Trade Assignment Waivers, he must be either traded or reinstated from the DL within 72 hours after the conclusion of the Claiming Period and/or after waivers have been secured.
Optional Assignment Waivers must be secured before a player can be optioned to the minors once the player has reached the third anniversary of the player being added to an MLB Active List (25-man roster) or MLB Disabled List for the first time, or the two-year anniversary if the player spent one full season on Optional Assignment to the minors prior to being added to an MLB Active List (25-man roster) or MLB Disabled List for the first time, or the one-year anniversary if the player spent two full seasons on Optional Assignment to the minors prior to being added to an MLB Active List (25-man roster) or MLB Disabled List for the first time.
Optional Assignment Waivers are revocable and can be withdrawn if a claim is made, but if a player is claimed off Optional Waivers and the waiver request is subsequently withdrawn, the player cannot be placed on Optional Assignment Waivers again for at least 30 days, and if a player is placed on Optional Waivers a second time in the same waiver period, the waivers become irrevocable and the request cannot be withdrawn.
Optional Assignment Waivers secured during the waiver period that commences on February 16th and during the waiver period that starts on the 31st day of the MLB regular season are in effect for the entire waiver period, but Optional Assignment Waivers secured during the waiver period that begins on August 1st are in effect only through the conclusion of the MLB regular season.
Optional Assignment Waivers secured on a player who is on an MLB Disabled List expire after 72 hours.
If a player on an MLB Disabled List is placed on Optional Assignment Waivers, he must be reinstated from the DL within 72 hours after the conclusion of the Claiming Period and/or after waivers have been secured.
Optional Assignment Waivers cannot be requested after October 1st or secured prior to February 16th.
Optional Assignment Waivers are not required if a player is being sent to the minors using a 4th minor league option, or if a player is being sent to the minors within 24 hours after being acquired in a trade.
If a club wishes to remove a player from its MLB Reserve List (40-man roster) and send the player to the minors, the club must first secure Outright Assignment Waivers. For all players on an MLB Reserve List (40-man Roster) other than Rule 5 players, Draft-Excluded players, and injured players, Outright Waivers can generally be requested anytime in a given waiver period, and they are always irrevocable. The waiver price is $25,000 for Rule 5 and Draft-Excluded players, and $20,000 for all other players.
Once secured, Outright Assignment Waivers remain in effect for a set period of time:
1. Seven days or until the end of the waiver period (whichever comes first) for Outright Assignment Waivers secured September 1st through the 30th day of the regular season:
2. The entire waiver period for Outright Assignment Waivers secured starting on the 31st day of the regular season through August 31st.
3. 72 hours if the player is on Optional Assignment to the minors or on a Disabled List.
If a player on an MLB or minor league Disabled List is placed on Outright Assignment Waivers, he must be reinstated from the DL within 72 hours after the conclusion of the Claiming Period and/or after waivers have been secured.
A club does not have to outright a player to the minors after securing Outright Assignment Waivers.
A player who has "no trade" rights (full or partial) must waive his "no trade" rights before he can be placed on Outright Assignment Waivers.
A player who has accrued at least five years of MLB Service Time cannot be sent outright to the minors without his consent. The player can waive this right, but the player's waiver (consent) cannot be granted more than ten days prior to MLB Opening Day, the player has the right to choose which minor league team to which he can be assigned, and the player's waiver (consent) automatically expires if the player is not outrighted to the minors within 45 days or by the 45th day of the MLB regular season (whichever is later).
A player on an MLB 40-man roster who has been outrighted previously in his career and/or who has accrued at least three years of MLB Service Time can elect to be a free-agent if he is sent outright to the minors. The outrighted player can elect to be a free-agent immediately upon being outrighted, or he can accept the Outright Assignment and defer his option to elect free-agency until after the conclusion of the MLB regular season. However, a player eligible to be a free-agent if outrighted who accepts an Outright Assignment and defers his option to elect free-agency until after the conclusion of the MLB regular season forfeits his right to elect free-agency if he is added back to an MLB 40-man roster prior to the conclusion of the MLB regular season.
If a player eligible to be a free-agent if outrighted elects to be a free-agent immediately, his contract is terminated and he receives no termination pay. But if the player accepts the Outright Assignment and defers his right to be a free-agent until the conclusion of the MLB regular season, the player continues to get paid, receiving the balance of his salary through to the end of the season. And then if the outrighted player is not subsequently added back to an MLB 40-man roster prior to the conclusion of the MLB regular season, the player can elect free-agency anytime beginning on the day after the conclusion of the MLB regular season through October 15th.
A player who has not previously been outrighted to the minors or who has not yet accrued three years of MLB Service Time but who qualified for salary arbitration as a "Super Two" player after the conclusion of the previous MLB regular season can elect free-agency if he is outrighted to the minors, but an outrighted "Super Two" player cannot defer free-agency until the conclusion of the MLB regular season. To become a free-agent, the outrighted "Super Two" player must elect free-agency immediately.
Once an outrighted player eligible to elect free-agency becomes a free-agent, the player can sign a major league or minor league contract with any club, including the player's previous club.
The club must advise the player in writing when it has decided to outright the player to the minors (the club can notify the player up to eight days in advance of the assignment during the off-season or if the player is out of minor league options, and up to four days in advance if the assignment is contemplated during Spring Training or during the MLB regular season). Once notified, the player must make his decision whether to accept or decline the assignment within three days if he is outrighted during Spring Training or during the MLB regular season, or within eight days if he is outrighted during the off-season.
1. A player cannot be outrighted to the minors on the two days prior to the Rule 5 Draft.
2. A "Rule 5 Player" cannot be outrighted to the minors any earlier than 20 days prior to the start of the MLB regular season.
3. A "Draft-Excluded Player" can be outrighted to the minors only if Outright Waivers are requested no later than the 4th day following the conclusion of the World Series, and if a "Draft-Excluded Player" is not outrighted to the minors prior to the Rule 5 Draft, the player cannot be sent to the minors any earlier than 20 days prior to the start of the MLB regular season (same as a Rule 5 player).
4. An unsigned player who is eligible to be an Article XX-D minor league free-agent if outrighted can be outrighted to the minors anytime during the off-season, but an unsigned player who would have been eligible to be an MLB Rule 55 minor league free-agent if the player had been on a minor league reserve list cannot be outrighted to the minors after 5 PM (Eastern) on October 15th or after 5:00 PM on the 5th day following the conclusion of the World Series (whichever is later).
5. If a player accrues at least one day of MLB Service Time in a season and then is outrighted to the minors prior to being tendered a Major League contract for the following season, the player's minor league monthly salary for the following season must be at least 80% of his final monthly salary from the previous season.
An injured player cannot be outrighted to the minors during the regular season, but most injured players can be outrighted to the minors at certain times during the off-season:
1. An injured "Rule 5 Player" cannot be outrighted to the minors at any time.
2. An injured player with less than three years of MLB Service Time who has not been outrighted to the minors previously in his career and who did not accrue any MLB Service Time the previous season can be outrighted to the minors during a period of time beginning on the day after the conclusion of the MLB regular season up until the 15th day prior to the start of the next MLB regular season.
3. All other injured players can be outrighted to the minors only during a period of time beginning on the day after the conclusion of the MLB regular season up until reserve lists are filed in November, and an injured "Draft-Excluded Player" can be outrighted during this period only if Outright Waivers are requested by the 4th day following the conclusion of the World Series.
Outright Release Waivers are irrevocable and cannot be withdrawn once they are requested.
While a player claimed off Outright Assignment Waivers costs $20,000 (or $25,000 for a Rule 5 or Draft-Excluded player), a club can claim a player off Outright Release Waivers for the miniscule sum of $1. However, a club that claims a player off Release Waivers is responsible for paying 100% of the player's remaining salary, whereas if the same club waits until the player clears Release Waivers, the club can sign the player for the MLB minimum salary (or prorated portion of the MLB minimum salary), with the player's former club responsible for the balance.
A player who is claimed off Outright Release Waivers has the option to decline the assignment and become a free-agent (he has up to five days to decide). For most players, refusing an Outright Release waiver claim means the player's contract is terminated with no severance and his former club owes him nothing (same as an Article XX-D minor league FA who refuses an Outright Assignment), but for a player with "no trade" rights who refuses an Outright Release waiver claim, the player is owed his full salary for the balance of the contract, same as if he had not been claimed.
A player on an MLB 40-man roster who is released during the period of time extending from April 1st through August 31st cannot be added back to the MLB Active List of the club that released the player for at least 30 days, and a player on an MLB 40-man roster who is released anytime during the period of time extending from September 1st through March 31st cannot be added back to the MLB 40-man roster (or MLB 25-man Active List) of the club that released the player until May 15th. Note that while a player who is "non-tendered" on 12/2 becomes a free-agent, it is not considered the same thing as an outright release, so a club can re-sign a non-tendered player to a Major League contract (or minor league contract) without any restrictions anytime after the player is non-tendered. Thus, December 2nd is a sort of roster "island oasis" in the middle of the off-season where clubs can drop a player from the 40-man roster (including injured players) without having to worry about waivers or restrictions on off-season outright assignments or outright release.
A player on an MLB Reserve List (40-man roster) signed to a non-guaranteed contract who is released more than 15 days prior to Opening Day receives 30 days salary as termination pay (paid at the "minor league rate" if the player is signed to a "split contract"), and a player on an MLB Reserve List signed to a non-guaranteed contract who is released 15 or fewer days prior to Opening Day receives 45 days salary as termination pay (all players paid at the "Major League rate"). A player on an MLB Reserve List signed to a non-guaranteed contract who is released during the MLB regular season receives 100% of his salary as termination pay (paid at the "minor league rate" for players on Optional Assignment to the minors). An unsigned player on an MLB Reserve List released during the off-season receives no termination pay. A Rule 5 player cannot be released during the off-season, and is always paid at the "Major League rate" as long as he is released prior to being outrighted to the minors.
A club cannot option a player signed to a "split contract" to the minors if the purpose of the assignment is to release the player and avoid paying termination pay at the "Major League rate."
A player is automatically & immediately removed from his club's Reserve List (40-man roster) and Active List when placed on Outright Release Waivers.
Sometimes a club wants to remove a player from its MLB Reserve List (40-man roster), but it has to be done immediately because the player's roster slot is needed, and it takes two business days to get a player through waivers. Or sometimes a club wants to remove a player from its MLB Active List (25-man roster), but the player has no minor league options remaining (or would have to clear Optional Assignment Waivers before he can be optioned to the minors), so the only way to remove the player from the 25-man roster would be by Outright Release, Outright Assignment, or a trade (or in the case of a player who needs to clear Optional Assignment Waivers before he can be optioned to the minors, only after Optional Assignment Waivers have been secured). In those cases, a club can place a player on the Designated List.
When a player is placed on the Designated List (and is "Designated for Assignment"), the "Designated Player" is removed from his club's MLB Reserve List (40-man roster), and then the club has up to ten days to either trade, release, or outright the player to the minors. A club can also return a Designated Player to the 40-man roster and either option the player to the minors or reinstate the player to the 25-man roster, as long as the Designated Player is not replaced on the 40-man roster by another player while the player is on the Designated List. (A club might have to DFA a player to buy time while it attempts to secure Optional Assignment Waivers).
A player continues to be paid and continues to accrue MLB Service Time while on the Designated List.
Also, a player acquired off waivers can be placed back onto Outright Waivers by his new club and can be outrighted to the minors if he is not claimed, but if a club acquires a player off waivers and the claiming club's 40-man roster is full so that the club needs to remove a player from its MLB Reserve List in order to open a spot on its 40-man roster for the newly-acquired player, the player who was claimed off waivers cannot be the player who gets "Designated for Assignment."
Before a player on Optional Assignment to the minors can be traded or Designated for Assignment, he must be recalled from his minor league assignment ("Recalled - Not to Report").
If a player who was "Recalled - Not to Report" is claimed off waivers while on the Designated List and either the waivers are irrevocable (Outright Assignment Waivers) or the player's club elects not to withdraw a revocable waiver request, the player is assigned to the claiming club.
A player acquired off waivers after being "Recalled - Not to Report" who is subsequently optioned to the minors by his new club must remain in the minors for a minimum of ten days (unless he is recalled to replace a player on the 25-man roster who is placed on the Disabled List, Bereavement List, Paternity List, etc, or the player's minor league season is over, or the player gets traded).
If a player is traded after being "Recalled - Not to Report" and then is optioned to the minors by his new club within 24 hours after the trade, the player can be recalled prior to spending ten days on optional assignment to the minors.
A player who is "Recalled - Not to Report" for the purpose of being Designated for Assignment accrues MLB Service Time equal to the number of days he is on the Designated List prior to being traded, released, or sent outright to the minors.