Stueve Siegel Hanson Obtains Final Approval of Landmark Tip Credit Notice Settlement
Firm Delivers $12.5M Settlement for Class of Minimum Wage and Tipped Casino Employees
As part of their nationwide effort to enforce federal and state minimum wage and overtime laws at casinos, Stueve Siegel Hanson and McClelland Law Firm secured a $12.5 million settlement for workers at Borgata Hotel Casino & Spa in Atlantic City, and MGM National Harbor Hotel and Casino near Washington D.C.
The sizable result is believed to be among the largest tip credit notice settlements obtained in the FLSA’s history.
The United States District Court for the District of New Jersey granted the motion for final approval during a hearing on July 21, 2022. Representing approximately two-thirds of the disputed minimum wages, the $12.5 million fund will provide meaningful settlement payments to workers who are paid below minimum wage.
The largest estimated settlement payment is more than $9,500 and payments of more than $5,000 will be received by approximately one-third of eligible table games dealers.
The estimated per capita settlement checks are more than $1,050 for dealers at Borgata and $4,500 for dealers at MGM National Harbor.
The two firms have reached settlements valued at more than $45 million in unpaid wages for casino workers around the country and continue to play a significant role in reforming casino wage and hour practices.
Among changes influenced: casinos paying the costs of employees’ gaming licenses; removing all supervisory and non-tipped employees from tip pooling arrangements; compliant tip credit notice policies; and paying tip credit employees at the correct overtime rate.
Stueve Siegel Hanson represents plaintiffs in high-profile wage and hour litigation throughout the country. The firm has recovered over $300M in unpaid wages for workers through verdicts and settlements. Chambers USA 2022 ranked Stueve Siegel Hanson for Labor & Employment in Missouri, noting among strengths, "The firm is very active in the wage and hour space. They're strategic, know the law and are aggressive in discovery."