MGM Springfield Reaches $6.8 Million Settlement Over Labor Violations

MGM Springfield, the popular casino resort, has reached a momentous agreement with the Massachusetts attorney-general’s office (AGO), ending a legal dispute over wage and hour violations. This settlement, amounting to $6.8 million, affects a vast workforce of more than 2,000 employees. These violations date back to October 2018, just two months after the grand opening of the $1 billion casino.

The violations by MGM Springfield encompassed various aspects of labor laws, including the failure to pay the minimum wage to tipped employees and settle overtime wages. Additional violations included issues related to tip retention, delayed payments, and sick pay.

As part of the settlement, the casino, operated by MGM Resorts International, will initiate a compliance program. This program will be overseen by an independent compliance reviewer, approved by the AGO, ensuring adherence to labor laws.

Andrea Campbell, the Massachusetts attorney-general, emphasized the importance of holding those who breach employment laws accountable. She stated, "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."

The issues with MGM Springfield's labor practices became apparent from the casino's early days. The AGO’s Fair Labor Division began receiving complaints shortly after the casino's 2018 opening. These complaints included allegations of managers illegally participating in wait staff tip-pooling, underpayment of service-rate employees, and staff being forced to work through meal breaks without compensation.

The affected group of workers, numbering 2,036, encompassed various roles within the MGM Springfield operation, primarily service employees earning hourly wages. This group included table game dealers, banquet servers, bartenders, and security guards.

To ensure compliance with labor laws, the casino will conduct regular training for relevant staff on wage and hour regulations. Additionally, two annual wage and hour audits will be carried out by a third party, with their findings submitted to the AGO for review.

Despite these legal challenges, MGM Springfield has demonstrated robust financial performance. In August 2023, the casino generated over $23 million in table and slots gross gaming revenue. Notably, it also achieved $289,320 in sports betting revenue from a $1.6 million handle in September, making it the state’s largest retail sportsbook.

With 250 rooms and a sprawling gaming area exceeding 125,000 square feet, MGM Springfield continues to be a prominent establishment, operated by MGM Resorts International and owned by Vici Properties.