MGM Resorts International is paying $12.5 million to settle a class-action lawsuit brought by table games dealers from two of its casinos over minimum wage violations.
Nearly 2,600 dealers at Atlantic City’s Borgata Hotel Casino & Spa and MGM National Harbor in Maryland will receive an average of $1,000 and $4,500 payments, respectively, according to court documents.
The lawsuit accused MGM Resorts of violating the Federal Labor Standards Act by improperly claiming a tip credit from employees who earn sub-minimum wage plus tips without notice.
A motion for preliminary approval was filed in a New Jersey federal court on Nov. 12. Law360 first reported the terms of the settlement.
The two plaintiffs, Maria Maldonado and Laura Day, are former table games dealers at Borgata and National Harbor, respectively. The claims were filed in the U.S. District Court of New Jersey.
Payouts to MGM Resorts dealers
According to court documents, Maldonado filed in May 2020, and Day filed her suit in early 2021.
Maldonado and Day will each receive $7,500 under the settlement terms.
Here are the details of who is eligible for a share of the settlement:
- Borgata tipped dealers paid $7.24 per hour or less between March 1, 2018 and Dec. 31, 2019
- National Harbor tipped dealers paid $11.49 per hour or less between Jan. 15, 2018 and Dec. 31, 2019.
The $12.5 million figure represents more than 64% of the tip credit damages alleged, according to Maldonado’s and Day’s motion for preliminary approval of the settlement.
Roughly 2,600 people will automatically receive settlement checks after the court approves the agreement.
“These are meaningful payments,” Maldonado and Day reportedly told Law360. “This is an outstanding result for class members.”
AP Photo/Mel Evans