MGM Springfield Pays $6.8M Settlement over Wage and Hour Violations

MGM Springfield has agreed to pay $6.8 million to the Massachusetts Attorney General’s Office (AGO) to settle recently discovered violations. As it turns out, the casino resort has been violating the state’s wage and hour laws for a long time.

The AGO learned that MGM Springfield failed to pay minimum wage to tipped employees. In addition, the resort didn’t settle overtime wages and retained tips. Other breaches included failure to pay its workers’ wages on time, as well as sick pay-related issues.

The first complaints were filed to the AGO’s Fair Labor Division in October 2018, just two months after MGM Springfield opened. Employees claimed that their managers were tip-pooling and underpaying employees. Some said they were forced to work during their scheduled meal breaks.

In total, the violations impacted 2,036 workers, most of whom were service employees with hourly wages.

MGM Springfield Will Implement a Compliance Program

In addition to paying the aforementioned $6.8 million settlement, MGM Springfield will be forced to implement a compliance program in order to avoid similar violations in the future. Supplementing that, the AGO will appoint a compliance reviewer that will make sure the MGM-owned property is following the program.

The program will train MGM’s staff on wage and hour compliance. A third party will conduct two annual audits and will submit results to the AGO.

The Massachusetts Attorney General, Andrea Campbell, slammed MGM Springfield over its failure to treat its employees fairly and in accordance with the law.

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.

Andrea Campbell, Massachusetts Attorney General

Campbell emphasized the importance of protecting employees from such treatment and holding unfair employers accountable.

The wage and hour issues are not MGM Springfield’s only recent violation. In May this year, the Massachusetts Gaming Commission issued a $45,000 civil administrative penalty to the property over underage gambling. The silver lining was that MGM Springfield self-reported many of these violations and cooperated with the investigation.