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Pennsylvania casino settles wage lawsuit for $6 million

On Behalf of | May 7, 2021 | Wage & Hour Litigation

When an employer does not pay what they should, then the employees may choose to file a lawsuit to obtain that necessary compensation. This recently happened when a wage lawsuit hit the Poarch Band-owned casino in Pennsylvania

According to the news report, the company, which is owned by the Poarch Band of Creek Indians, was involved in a lawsuit between itself and its employees. The claims from employees stated that the facility had not provided notification of tip credits to the employees. Some 3,000 employees were making less than minimum wage

The lawsuit went on to claim that the employer had deducted the cost of gaming licenses from their workers’ earnings. 

The casino owner denies wrongdoing

The defendant in the lawsuit claims they didn’t do anything wrong but agreed to a settlement to avoid any further litigation. The settlement fund will be valued at $6 million and be available to employees looking to settle their claims.

What did this company do wrong?

According to federal law, employers are allowed to pay their employees less than minimum wage if their employee makes enough money through tips. At this property, workers earned $4.25 plus tips, but the lawsuit claims that employees weren’t informed of the federal provisions. It was claimed that the employees weren’t told how much extra they earned in tips.

It is estimated that each plaintiff in the case will receive $2,190 in additional compensation, on average, for license agreement and tip-related violations. 

If your employer doesn’t tell you about your tips or doesn’t tip you out all that you earned, you may have a case, too. It’s important to keep a close eye on your earnings. If you think your employer has cheated you out of your wages, it may be time to speak to an attorney.