MGM Springfield Settles for Nearly $7 Million in Employment Law Violations

MGM Springfield, the casino resort in Massachusetts, has agreed to pay approximately $7 million in restitution and penalties for widespread violations of employment law. The settlement, reached with the state attorney-general's office (AGO), amounts to $6.8 million and addresses wage and hour violations impacting over 2,000 employees. These violations date back to October 2018, just two months after the $1 billion casino resort opened.

The violations encompass a range of issues, including failing to pay the minimum wage to tipped employees, settling overtime wages, tip retention, timely payments, and sick pay. As part of the settlement, the MGM Resorts International-operated casino will establish a compliance program. An independent compliance reviewer approved by the AGO and retained by MGM will oversee its implementation.

Andrea Campbell, the Massachusetts attorney-general, expressed her commitment to holding those who violate employment laws accountable. She stated, "MGM Springfield’s failure to provide its employees, especially service workers earning an hourly wage and relying on tips, with their full wages and benefits made it more difficult for these employees to take care of themselves and their families."

Complaints to the AGO's Fair Labor Division began pouring in shortly after the casino's opening in 2018. These complaints alleged that managers were illegally participating in wait staff tip-pooling and underpaying service-rate employees. There were also accusations of staff being forced to work through meal breaks without compensation.

The 2,036 affected workers at MGM Springfield cover various roles in the operation, primarily service employees earning hourly wages. These roles include table game dealers, banquet servers, bartenders, and security guards.

The compliance program will involve regular training for relevant staff on wage and hour compliance and two annual wage and hour audits conducted by a third party. The audit findings will be submitted to the AGO for review.

MGM Springfield reported generating more than $23 million in gross gaming revenue from table games and slots in August 2023. Additionally, it collected $289,320 in sports betting revenue from a $1.6 million handle in September, making it the largest retail sportsbook in the state.

The resort features 250 rooms and offers over 125,000 square feet of gaming space. It is operated by MGM Resorts International and owned by Vici Properties.

By fLEXI tEAM