MGM Springfield $6.8M Fine for Underpaying Workers

Article by : Erik Gibbs Oct 27, 2023

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MGM Springfield has been hit with a $6.8 million settlement due to wage and tip violations, as revealed by investigators. Over 2,000 workers who were affected by these violations, including failures to pay overtime and minimum wage to tipped employees, will be compensated according to the state Attorney General’s Office.

AG Andrea Campbell recently announced this settlement, which includes restitution and penalties.

The investigation found that MGM Springfield also failed to provide timely wage payments and paid earned sick time, in addition to unlawful tip retention by casino management.

Dara Cohen, the director of regional corporate communications for MGM Resorts International, emphasized their commitment to compliance and noted that they have been actively implementing updates since 2019 to rectify the issue.

Cohen further stated that they will persist in their investment in training and conducting regular policy and procedure reviews to maintain ongoing compliance.

Campbell emphasized that MGM Springfield’s failure to provide full wages and benefits to employees, especially those reliant on hourly wages and tips, made it harder for them to support themselves and their families.

The illegal operations impacted a total of 2,036 workers, primarily service employees, such as game dealers, banquet servers, bartenders, ushers and kitchen staff.

The complaints from MGM employees began in October 2018, prompting the investigation by the Attorney General’s Office.

The Fair Labor Division of the Attorney General’s office received complaints regarding several violations, including instances of managers unlawfully participating in the tip-pooling system for wait staff, MGM not fully compensating service-rate employees for their overtime hours and the company compelling security guards to work through their meal breaks without providing compensation.

In accordance with the settlement terms, MGM is obligated to establish a compliance program that involves regular wage and hour compliance training for relevant staff.

Additionally, an independent entity will conduct two annual wage and hour audits, with the findings submitted to the Attorney General.

The settlement, signed on Wednesday, neither requires MGM to admit nor deny wrongdoing.

The impacted employees, identified in an attachment to the settlement agreement, are entitled to receive back pay and tips totaling $461,587.

MGM is obligated to make these payments to the employees within 30 days, as outlined in the agreement.

The remaining portion of the settlement, amounting to $6.37 million, is to be remitted to the state within 30 days, as stipulated in the agreement.