MGM Springfield Reaches $6.8 Million Settlement Agreement With The State

MGM Springfield Reaches $6.8 Million Settlement Agreement With The State

Time Stamp: October 27, 2023 4:43 PM

MGM Springfield reached a $6.8 million settlement with the Attorney General’s Office over the allegations that the company committed wage and hour violations to impact 2,036 workers. As Boston Herald reports, the settlement includes the obligation for MGM Springfield to compensate the workers for its alleged failures referring to overtime work and tip retention.

Settlement Agreement Reached:

According to the source, the agreement between Attorney General Andrea Campbell‘s office and the company includes restitution and penalties, as well as the MGM Springfield‘s right to remain silent as far as the allegations are concerned. Therefore the casino giant has neither confirmed or denied the failure but has agreed upon the $6.8 million settlement of the issue.

Alleged Failures:

Boston Herald further reports that MGM Springfield has allegedly failed to pay minimum wage to employees receiving tips or working overtime. The company has allegedly also failed to make timely payments and provide paid sick leaves and unlawfully retained tips earned by employees. According to the source, the allegations refer to an extended period of time.

Extended Allegations:

Dara Cohen, director of regional corporate communications for MGM Resorts International, told the source: “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.” On the other hand, Attorney General Campbell reportedly said: “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. My office will continue to hold accountable those who violate our wage and hour laws.”

MGM Springfield’s Liability Under the Agreement:

As reported by Boston Herald, Campbell’s office stated that 2,036 employees including game dealers, bartenders, ushers, and other service workers were impacted by the company’s illegal operations. The source indicated that the MGM staff has filed complaints with the Office since 2018 to be legally awarded the compensation by the latest settlement agreement between the company and the state signed on 25 October 2023. The employees affected were reportedly identified by the agreement to receive their proceeds back within 30 days. As reported, these reimbursements amount to a total of $461,587.

The agreement also obliges MGM Spriengfild to make the payment of the balance of $6.37 million to the state within 30 days, as well as to implement a respective compliance program to be audited by an independent party and annually reported to the Attorney General.

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