Former dealer files class action lawsuit against Monarch Casino Black Hawk
The claim was filed by former dealer Ryan Hyde on his own behalf and on behalf of other former and current casino employees. He alleges that the pay practices of Monarch Casino Resort Spa Black Hawk reached the federal Fair Labor Standards Act, as well as Colorado’s wage laws and the Healthy Families and Workplaces Act.
The dispute over the tip credit
At the heart of the case lies the use of the so-called ‘tip credit’, a mechanism that allows employers to pay staff who receive tips less than the standard minimum wage, provided a number of strict conditions are met. Hyde claims that Monarch failed to meet these conditions. According to him, the company did not explain to employees exactly how this scheme works, did not update notices when pay rates changed, and did not display the required information materials in the workplace.
As a result, the claimant argues, dealers should have been paid the full minimum wage rather than the reduced rate for tip-based employees. The claim alleges that the company acted knowingly and with wilful disregard for the law by continuing this unlawful practice in relation to tip-based employees.
A shared tips pot and unpaid work
A separate complaint concerns the distribution of tips. According to Hyde, dealers were forced to share their tips with supervisors, who would sometimes fill in for them during shifts. In his view, this practice renders the shared tip pool unlawful, as supervisors hold positions that do not involve receiving tips and are not entitled to a share of the pool. The claim also states that customers were never notified in writing that their tips would be pooled, as required by Colorado law.
Furthermore, the claimant alleges that dealers had to arrive at work 15 to 20 minutes before the start of their shift to collect boxes of tips, attend compulsory meetings and be assigned to gaming tables, however, this time was unpaid and did not allow them to receive tips.
The complaint further alleges that dealers were required to purchase their own uniforms at their own expense, adding to the list of unreimbursed work-related costs.
What the claimant is seeking
The claim states separately that the company underpaid sick pay and holiday pay by excluding tips from the calculation of employees’ standard pay rates.
The proposed class action covers tip-dependent workers nationwide under federal law, as well as several specific groups of employees in Colorado. The claimant is seeking back pay, overtime pay, penalties, compensation and interest.
Monarch Casino has not yet responded in court and has declined to comment.