Last year saw a notable legal action in the casino industry, when workers from various casinos in Missouri initiated a class action lawsuit against Penn National Gaming, and two of their Missouri-based casinos—Hollywood Casino St. Louis and Argosy Riverside Casino. The plaintiffs accused the implicated parties of being in violation of several laws by unlawfully slashing their wages. The accusations made by the casino employees asserted that the companies unlawfully reduced their pay to cover expenses associated with the maintenance, procurement, and renewal of gaming licenses in the state.
Additional accusations from the casino employees claimed that these companies concocted a tip pool designated for table game dealers. These tips were then allegedly utilized to finance paid leave for non-tipped employees, like supervisors and managers.
Ruling Affirms a $5.5 Million Compensation
Based on the lawsuit filed, the trio of Penn National Gaming, Hollywood Casino, and Argosy Riverside Casino were alleged of violating the Fair Labor Standards Act. The casino employees identified breaches in the Missouri Minimum Wage Law and the Employee Retirement Income Security Act as well.
The plaintiffs’ legal counsel includes George A. Hanson and Alexander T. Ricke from Stueve Siegel Hanson LLP, in addition to Ryan L. McClelland and Michael J. Rahmberg from the McClelland Law Firm, P.C.
As disclosed by a report made public by Missouri Lawyers Media, a van determined upon a $5.5 million settlement, aligning with the casino workers’ lawsuit. US District Judge Stephen R. Bough accorded preliminary approval to the settlement in January of last year. As confirmed by the recent report, the judge sanctioned the final settlement for the lawsuit on May 25.
From the sanctioned $5.5 million settlement, approximately 35% is due to be distributed to legal attorney fees. Remaining unspent money will notably benefit The Kaufman Fund and Angels’ Arms, two charitable organizations.
In related news from Missouri, twelve ballot initiatives are expected to facilitate the introduction of legal sports betting throughout the state. Although backed by professional sports teams and lawmakers, this activity remains illegal in Missouri. Each one of these 12 proposals must gather at least 171,592 signatures, with May serving as the deadline, to appear on the November Ballot.
