A judge approved a $5.5 million settlement on behalf of a class of Missouri casino workers who alleged that they faced unlawful employment practices that reduced their paychecks.
The class action suit alleged that Penn National Gaming Inc. and two of its casinos, the Argosy Riverside Casino and Hollywood Casino in St. Louis, had violated state and federal laws in three ways. According to the complaint, the defendants had deducted the costs to obtain, maintain and renew state-issued gaming licenses from employees’ wages.
The suit also alleged the casinos had required table games dealers to pool their tips, then used that money to cover paid time off for non-tipped managers and supervisors. Finally, the suit claimed the casinos’ wellness programs charged higher costs to tobacco users but failed to fully reimburse those employees if they went through a smoking cessation program.
The suit alleged violations of the Missouri Minimum Wage Law and the federal Fair Labor Standards Act and Employee Retirement Income Security Act. The defendants denied any violations and did not admit liability but said in court filings that they wanted to avoid the risk, expense and inconvenience of further litigation.
Following initial approval in January 2023, Judge Stephen R. Bough gave final approval for the settlement on May 25. The judge approved payment of 35 percent of the settlement fund as attorneys’ fees. Unspent money will go as a cy pres award to the charitable organizations Angels’ Arms and the Kaufman Fund.
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