Borgata, MGM National Harbor wage-and-hour $12.5M class action settlement

Certain employees and former employees of the Borgata Hotel Casino and Spa and the MGM National Harbor Casino may be eligible for compensation after the defendants reached a $12.5 million settlement regarding a lawsuit over wages.

There are two defined classes as part of this settlement. 

The first is the Borgata Class, which is all tipped employees working as a dealer at Borgata earning a direct cash wage of $7.24 or less per hour between March 1, 2018, and Dec. 31, 2019. 

The second class is the MGM National Harbor class. This class consists of all tipped employees working as a dealer at MGM National Harbor earning a direct cash wage of $11.49 or less per hour between Jan. 15, 2018, and Dec. 31, 2019. 

Dealers at the Borgata casino could see an average of $1,000, according to Yogonet Gaming News, while dealers at the MGM casino could see an average of $4,500. Some 2,600 people may be included in the two classes.

The lawsuit alleges the defendants paid workers below minimum wage “by improperly claiming a tip credit without notice.” Under federal labor law, an employer may pay an employee less than minimum wage if they are “tipped employees.” In specific circumstances, employers may draw a tip credit, which can be pooled and distributed among other tipped employees. The lawsuit stated the plaintiffs and other similarly situated tipped employees were not informed, in advance of the defendants’ use of the tip credit, of: 

1. the additional amount by which the wages of the tipped employee are increased on account of the tip credit claimed by defendants, which amount may not exceed the value of the tips actually received by the employee 
2. that all tips received by the tipped employee must be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips 
3. that the tip credit shall not apply to any employee who has not been informed of these requirements in this section.

Borgata was one of the most prosperous casinos in New Jersey in 2020, according to The Associated Press. Of the state’s nine casinos, the Borgata had the highest total revenue, with $94.3 million. 

MGM National Harbor is regularly at the top of the revenue list of Maryland’s six casinos. MGM National Harbor led all casinos in 2021 gross gaming revenue with approximately $769.8 million, Casino.org reported.

Despite agreeing to the $12.5 million settlement, the casinos deny the allegations in the complaint. The settlement states the defendants will not take adverse action against employees who accept a settlement payment. 

A final approval hearing is scheduled for July 20, 2022.

The deadline to opt out of or object to the settlement is July 15, 2022.

Class members do not need to submit a claim form in order to benefit from the Borgata and MGM wage-and-hour settlement.

Who’s Eligible

There are two defined classes as part of this settlement. 

The first is the Borgata Class, which is all tipped employees working as a dealer at Borgata earning a direct cash wage of $7.24 or less per hour between March 1, 2018, and Dec. 31, 2019. 

The second class is the MGM National Harbor class. This class consists of all tipped employees working as a dealer at MGM National Harbor earning a direct cash wage of $11.49 or less per hour between Jan. 15, 2018, and Dec. 31, 2019. 

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Objection Deadline

07/15/2022

Case Name

Maldonado, et al. v. Marina District Development Company, LLC d/b/a Borgata Hotel Casino & Spa, et al., Case No. 1:20-CV-05599-CPO-MJS, in the U.S. District Court for the District of New Jersey

Final Hearing

07/20/2022

Settlement Website

CasinoClassActionSettlement.com

Claims Administrator

Maldonado v. Marina District Development Company LLC
Claims Administrator
P.O. Box 26170
Santa Ana, CA 92799
info@CasinoClassActionSettlement.com
866-602-7271

Class Counsel

George A Hanson
Alexander T Ricke
STUEVE SIEGEL HANSON LLP

Ryan L McClelland
Michael J Rahmberg
McCLELLAND LAW FIRM PC

R Andrew Santillo
Mark J Gottesfeld
WINEBRAKE & SANTILLO LLC

Defense Counsel

Matthew C Kane
Baker & Hostetler LLP

Russell L Lichtenstein
Cooper Levenson PA