MGM Agrees Settlement Over Wage and Hour Disputes

By Jerry Smith Staff Writer Updated: 11/11/2023

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MGM Springfield

According to reports, gaming and entertainment giant MGM has reached a landmark settlement over wage and hour disputes at MGM Springfield in Massachusetts.

MGM Springfield has agreed to pay $6.8 million in relation to allegations of wage and hour violations affecting over 2,000 workers, according to a report from the Boston Herald. The agreement, which has been reached with the Attorney General’s Office, means that the casino giant will now have to compensate workers for alleged failures related to overtime work and the retention of tips.

MGM Springfield has been at the center of controversy for its employment practices, with allegations that the company failed to pay minimum wages to employees working overtime or receiving tips.

In addition, the company was accused of not making timely payments, failing to provide paid sick leave, and unlawfully retaining tips that had been earned by employees. The alleged violations reportedly took place over an extended period.

Investigation Was Launched Following Complaints

Following complaints, Attorney General Andrea Campbell’s office led an investigation into MGM Springfield’s practices, resulting in the settlement agreement. The company has agreed to the terms of the settlement, which include restitution and penalties, but has failed to actually admit fault. MGM Springfield has also secured the right to remain silent regarding the allegations.

The settlement impacts 2,036 employees, ranging from game dealers and bartenders to ushers and other service workers. These workers were reportedly affected by the company’s illegal operations, with some staff members filing complaints with the Attorney General’s Office since 2018. Under the terms of the settlement, these employees are in line to receive reimbursement totaling $461,587 within 30 days.

In a statement, Dara Cohen, director of regional corporate communications for MGM Resorts International, emphasized the company’s commitment to compliance. Cohen stated:

We take our compliance obligations seriously and have made proactive updates since 2019 to address this issue. We will continue to invest in training and regular reviews of our policies and procedures to ensure ongoing compliance.

It is reported that the Attorney General said that MGM’s failure to provide its workers with full wages and benefits had made it far more difficult for employees to manage, which affected both the workers and their families. She added that the Attorney General’s Office would continue to monitor these situations and hold companies that violated wage and hour laws accountable.

Millions to Also be Paid to the State

In addition to compensating the affected workers, MGM Springfield is required to pay the balance of $6.37 million to the state within 30 days. The agreement also outlines the implementation of a compliance program, which will be audited by an independent party and reported annually to the Attorney General’s Office.

The settlement represents a significant step in addressing labor violations in the casino industry and it has also highlighted the importance of employer accountability. As MGM Springfield works to rectify past mistakes and ensure compliance moving forward, officials hope that this case will serve as an example to other employers within the state.