MGM Springfield has been ordered to pay $6.8 million to 2,000 employees after Massachusetts state investigators found multiple wage violations, including the failure to pay minimum wage to tipped employees, failure to pay overtime wages and earned sick time, and failure to make timely payments.
The office of Massachusetts Attorney General Andrea Campbell announced the $6.8 million settlement after a multi-year investigation revealed the violations.
“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,” Campbell said in a press release. “My office will continue to hold accountable those who violate our wage and hour laws.”
“We take our compliance obligations seriously and have made proactive updates since 2019 to address this issue,” Dara Cohen, director of regional corporate communications for MGM Resorts International, said in an email to the Boston Herald. “We will continue to invest in training and regular reviews of our policies and procedures to ensure ongoing compliance.”
Affected employees, who were identified in an appendix to the settlement agreement, are due to receive back pay and tips totaling $461,587. The agreement calls for MGM to make payments to employees within 30 days. The remainder of the settlement, $6.37 million, is due to be paid to the state, also within 30 days.
The investigation was launched after MGM employees made complaints to the Fair Labor Division of the Attorney General’s Office beginning in 2018.
