MGM Springfield Agrees $6.8М Settlement with MA’s Attorney General’s Office
LISTEN TO THIS ARTICLE:MGM Springfield is set to pay nearly $7 million in both restitution and penalties for widespread violations of employment laws in Massachusetts.
The large casino resort has come to a $6.8 million settlement with the state's Attorney General’s Office (AGO) over issues related to wages and work hours. The agreement affects more than 2,000 workers and stems from complaints that began in October 2018, just two months after the $1 billion facility first opened for business.
Wide Ranging Pay-Related Violations
The violations committed by MGM Springfield covered a variety of employment-related issues. These ranged from not paying minimum wage to employees who rely on tips, to failing to properly compensate workers for overtime. The list of infractions also includes issues such as tip retention, delayed payments, and inadequate sick pay.
The settlement requires MGM Springfield to put a new compliance program in place. An independent compliance reviewer, who is both hired by MGM and approved by the AGO, will oversee its implementation.
Related: MGA faces lawsuit from a gambler
Massachusetts Attorney General Andrea Campbell stressed the importance of holding violators of employment laws accountable.
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.
Prior Violations at MGM Springfield
This isn't the first time the resort has run afoul of employment laws. The AGO’s Fair Labor Division started getting complaints almost immediately after MGM Springfield began operations in 2018. Among the allegations were that managers were unlawfully involved in pooling tips meant for wait staff. There were also claims of underpayment to service-rate employees and unpaid meal breaks.
The workers affected by these violations are primarily service employees paid by the hour. Jobs in this category include table game dealers, banquet servers, bartenders, and security personnel.
As a part of the compliance efforts, MGM Springfield will hold regular training sessions on wage and hour compliance for pertinent staff. Additionally, a third-party auditor will conduct two annual wage and hour audits, and the findings will be submitted to the AGO for scrutiny.
In August 2023, MGM Springfield generated over $23 million from table games and slots. In September, the resort made $289,320 from a $1.6 million handle in sports betting, becoming the state's largest retail sportsbook. The resort, offering 250 rooms and more than 125,000 square feet of gaming space, is operated by MGM Resorts International and owned by Vici Properties.
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