MGM Springfield will pay almost $7m in restitution and penalties over widescale violations of employment law in Massachusetts.
The vast casino resort reached a settlement with the state Attorney General’s Office (AGO) totalling $6.8m (6.4m/5.6m) over wage and hour violations. More than 2,000 employees are impacted by the agreement, which relates to complaints dating back to October 2018 – just two months after the $1bn venue opened its doors.
The full range of breaches by MGM Springfield included failure to pay minimum wage to tipped employees and settle overtime wages. Other violations related to tip retention, timely payments and sick pay.
As part of the settlement, the MGM Resorts International-operated casino will implement a compliance programme. An independent compliance reviewer retained by MGM and approved of by the AGO will carry this out.
Andrea Campbell, the Massachusetts Attorney General, vowed to hold accountable those who violate employment laws.
She said: “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.”
The AGO’s Fair Labor Division began receiving complaints soon after the casino opened in 2018. These included allegations that managers were illegally participating in wait staff tip-pooling. MGM also faces...
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