Steffans Legal Files Class Action on Behalf of Tipped Employees Against MGM Springfield

On Monday October 28, we filed a class action on behalf of Shawn Connors and all other tipped employees at MGM Springfield for what we believe to be serious violations of state and federal wage-and-hour laws.

First, MGM pays its tipped employees a minimum wage below the basic federal minimum wage ($7.25/hour) and the basic Massachusetts minimum wage ($12.00). That lower rate is typically called a ‘service rate.’ That’s ok in some circumstances, but only if employers comply with specific requirements regarding notification to those receiving the service rate. We believe MGM failed to comply with those notification requirements, which makes their practice of paying the service rate a violation of state and federal minimum wage laws.

Second, MGM calculates overtime rates based upon the service rate, as opposed to the basic minimum wage. We believe that violates state and federal laws regarding payment of overtime.

Third, MGM deducts the cost of gaming licenses from its dealers, a practice that we think violates Massachusetts laws regarding what employers can and cannot deduct from employee wages.

We are proud to stand with Shawn and his co-workers and look forward to fighting to get them the wages they deserve.

Click here to learn more about laws regarding tips, tip pools, and service charges.