[co-author: Stephanie Kozol]*

Massachusetts Attorney General (AG) Andrea Joy Campbell has announced a $6.8 million settlement with the operator of an MGM resort and casino known as MGM Springfield for the entity’s alleged violations of the Massachusetts Wage Act, Minimum Wage Law, Overtime Law, and the state’s Earned Sick Time Law.

Executed on October 25, the settlement between AG Campbell and MGM requires the payment of nearly $462,000 in restitution and more than $6.3 million in penalties to resolve allegations of failure to pay minimum wage to tipped employees, failure to pay overtime wages, unlawful tip retention, failure to make timely payments of wages, and failure to provide paid earned sick time as required under Massachusetts law.

MGM neither admitted nor denied the conduct alleged in the settlement.

In addition to the financial terms, MGM must abide by all Massachusetts wage and hour laws and establish and implement a compliance program involving the hiring of an independent compliance reviewer that will remain in place for two years and submit annual audits.

Why It Matters

The Massachusetts AG’s enforcement action demonstrates its continued enforcement of the Commonwealth’s employment laws and also provides a warning that businesses involved in highly regulated industries – such as gaming – should pay close heed to the state regulatory landscape in the jurisdictions where they are operating to ensure compliance with all state laws and regulations.

*Senior Government Relations Manager