Penn National Gaming Settles 5.5M Casino Wage Theft Lawsuit

Casino workers in Missouri have settled a casino wage theft lawsuit against Penn National Gaming and two of its casinos for wage theft. Penn National Gaming, Argosy Riverside Casino, and Hollywood Casino were sued creating and maintaining an illegal tip pool. According to the allegations of the complaint, Penn Gaming deducted the costs of gaming licenses from the employees. Under the Fair Labor Standards Act, gaming licenses are for the primary benefit of the employer, and those costs may not be deducted from wages. Generally speaking, costs which arise from employment (vs. costs which arise from ordinary life outside the workplace) cannot be “charged back” to the employee. Occupational licensing costs, like state-issued gaming licenses, arise out of employment rather than the ordinary course of life. 

Penn Gaming also maintained illegal tip pools at both the Argosy property and its Hollywood Casino St. Louis property. Penn gaming required table games dealers to pool their tips and then used those tips to pay for the Paid Time Off “PTO” of certain non-tipped managers and supervisor employees. Under the Fair Labor Standards Act at the time the case was filed, tip sharing with those who customarily do not receive tips was illegal. Employers may not retain any portion of an employee’s tips, “including allowing managers or supervisors to keep any portion of employee’s tips.” 

Wage theft is widespread in the gaming industry. If you work in the gaming industry and your wages are taken by your employer, call Flynn Law Firm at 888-353-5995 today.