Massachusetts: MGM Springfield to pay $6.8 million in settlement for labor violations

After a lengthy investigation, the MGM Springfield casino has agreed to pay a $6.8 million settlement for various wage and hour violations against its employees, as announced by the Massachusetts Attorney General’s office.

The indictment alleged that MGM Springfield failed to pay minimum wage to tipped employees, failed to pay overtime wages, and conducted illegal withholdings of tips by management. It was also pointed out that the company failed to make wage payments in a timely manner and did not grant employees due paid sick time. The amount agreed was exactly $6,839,287.

The investigation began in 2018, when 2,306 MGM employees reported improper practices to the Attorney General’s office, such as managers improperly participating in tip apportionment and security guards being forced to work during their lunch breaks without proper compensation.

Among the workers affected were table game dealers, banquet servers, bartenders, ushers, kitchen staff, casino floor staff, hotel staff, warehouse personnel, cleaners, and security guards.

In response to 22News, Dara Cohen, Director of Regional Corporate Communications for MGM Resorts International, sent the following statement: “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.”

The company further informed that it will implement a compliance program, which will provide training to staff on wage and hour compliance, as well as two annual wage and hour audits conducted by a third party who will submit their findings to the Attorney General’s office.