Below are relevant paragraphs from the league rules:
Subsequent drafts will be in inverse order of finish except that for the first round only there will be a random weighted lottery among the 4 teams with the worst record (4 chances for the team with the worst record, 3 chance for 2nd worst etc.). The tiebreaker will be run differential (runs scored less runs allowed) with the team with the worst run differential drafting higher.
Salary Cap Violations (rule added 1/8/14)
1. If an owner discovers that a draft pick puts them in violation of the salary cap, they must immediately take steps to make a trade (not necessarily the player who put them over the salary cap but any player) or make other arrangements (added 9/11/15) which will put them under the salary cap as quickly as possible. They may trade a player for a player from another team, for a draft pick later in the draft or a player or players for players and/or current or future draft picks.
Add/Drop Round (rule added 9/12/15)
Starting at 11:00 AM EDT on the day following the conclusion of the annual draft, there will be an annual draft on a first come, first served basis. During the add/drop round, a player dropped by one owner may be added by another owner if desired.
Players drafted during the current year's annual draft MAY NOT be dropped during the add/drop round. This includes a player drafted and subsequently traded.