Certain employees and former employees of the Borgata Hotel Casino and Spa and the MGM National Harbor Casino may be eligible for compensation after the defendants reached a $12.5 million settlement regarding a lawsuit over wages.
There are two defined classes as part of this settlement.
The first is the Borgata Class, which is all tipped employees working as a dealer at Borgata earning a direct cash wage of $7.24 or less per hour between March 1, 2018, and Dec. 31, 2019.
The second class is the MGM National Harbor class. This class consists of all tipped employees working as a dealer at MGM National Harbor earning a direct cash wage of $11.49 or less per hour between Jan. 15, 2018, and Dec. 31, 2019.
Dealers at the Borgata casino could see an average of $1,000, according to Yogonet Gaming News, while dealers at the MGM casino could see an average of $4,500. Some 2,600 people may be included in the two classes.
The lawsuit alleges the defendants paid workers below minimum wage “by improperly claiming a tip credit without notice.” Under federal labor law, an employer may pay an employee less than minimum wage if they are “tipped employees.” In specific circumstances, employers may draw a tip credit, which can be pooled and distributed among other tipped employees. The lawsuit stated the plaintiffs and other similarly situated tipped employees were not informed, in advance of the defendants’ use of the tip credit, of:
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