The second-largest casino in Massachusetts violated labor laws and is paying a seven-figure fine for it.
The Massachusetts Attorney General’s Office and MGM Springfield agreed to a $6.8 million settlement after the casino failed to pay proper restitution and for penalties associated with wage and hour violations.
These infractions occurred at the casino over the last five years. Massachusetts online casinos aren’t legal yet. Thus, the three brick-and-mortar facilities are the only options in the Bay State for now.
The attorney general arrived at a deal with MGM Springfield to resolve an investigation. The company did not properly pay wages and misallocated employee tips over several years.
Affected employees will receive most of the settlement
The final settlement totals $6,839,287. Much of this sum will land in the pockets of employees who did not receive money owed to them.
“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,” Attorney General Andrea Campbell said in a statement announcing the penalties and payment settlement. “My office will continue to hold accountable those who violate our wage and hour laws.”
MGM Resorts Director of Regional Corporate Communications Dara Cohen said the company is taking steps to ensure this violation doesn’t happen again.
“We take our compliance obligations seriously and have made proactive updates since 2019 to address this issue,” said Cohen in a statement secured by WLLP 22-News. “We will continue to invest in training and regular reviews of our policies and procedures to ensure ongoing compliance.”
Casino paid less than minimum wage to tipped employees
The investigation by the AG’s office began in 2018. According to the investigation, MGM Springfield did not pay minimum wage to tipped employees, as required by state law.
Additionally, some employees did not receive overtime wages they were eligible for. Lastly, MGM management unlawfully held back tip money from employees.
The attorney general’s office also learned that the company did not always make timely payments of employee wages and was delinquent in supplying paid sick time. The investigation revealed that the practices of MGM management impacted 2,036 employees.
MGM Resorts has much of its business in Nevada but owns several regional casinos nationwide.
The company has seven casino resorts in Las Vegas, making it the largest gaming facility operator on the strip. Those properties include MGM Grand Las Vegas, Mandalay Bay, Cosmopolitan, Park MGM, Luxor, New York-New York, and Excalibur.
MGM Springfield opened in August of 2018, and the Massachusetts AG’s office found an issue with wages and unlawful compensation practices almost immediately. The casino employs more than 1,100 people and has as many as 500 other contractors and vendors via business relationships.
