A dealer from Monarch Casino Resort Spa Black Hawk has initiated a proposed class action lawsuit, claiming that the Colorado establishment consistently underpaid its tipped staff through illegal tip-credit methods, unpaid pre-shift duties, and inappropriate tip pooling practices.
The lawsuit, lodged on Monday in the US District Court for Colorado, was initiated by ex-dealer Ryan Hyde, representing himself and other current and former employees.
The allegations contend that the casino’s compensation practices breach the federal Fair Labor Standards Act (FLSA), Colorado wage statutes, and the state’s Healthy Families and Workplaces Act (HFWA).
Hyde asserts that Monarch did not adhere to these legal standards, implying that dealers deserve to receive the full minimum wage instead of a reduced tipped wage.
Scrutiny on Tip Credit
Central to the lawsuit is Monarch’s application of the “tip credit,” which permits employers to compensate tipped employees below the standard minimum wage when certain legal conditions are met.
Hyde argues that Monarch did not fulfill these criteria by failing to adequately inform employees about the tip credit system, neglecting to issue updated notifications following pay rate changes, and ignoring legal obligations to display workplace notices. Therefore, he maintains that dealers should have been compensated at the full minimum wage instead of the lower tipped wage.
“Monarch Casino and Monarch Black Hawk acted knowingly, willfully, and/or with reckless disregard of the law,” the lawsuit claims, alleging that the company persisted in an “illegal pattern and practice” impacting tipped staff.
The complaint states, “As a consequence of these infractions, Monarch Casino and Monarch Black Hawk forfeited their right to utilize the tip credit,” insisting that the company must “pay employees at the full minimum wage, return all work-related expenses, and reimburse all tips contributed to the invalid tip pool.”
Hyde also claims that dealers were compelled to share tips with supervisors who occasionally took over dealer positions, making the tip pool illegal.
“A supervisor occupies a non-tipped role and is not qualified to partake in the tip pool,” the lawsuit argues. Furthermore, it alleges that customers were never informed in writing that their tips would be pooled, as mandated by Colorado law.
Claims of ‘Unpaid Work’
Hyde additionally asserts that dealers had to arrive 15 to 20 minutes prior to their shifts to collect tip boxes, attend obligatory meetings, and receive table assignments before starting their shifts, resulting in work that was neither compensated nor afforded the opportunity to earn tips.
The lawsuit claims that these tasks are compensable under Colorado law because they were mandatory and conducted for the benefit of Monarch.
Beyond wage claims, the lawsuit contends that Monarch underpaid sick leave and vacation compensation by failing to include tips in employees’ regular pay rates.
The proposed lawsuit aims to represent tipped employees nationwide under the FLSA, along with specific classes related to Colorado, seeking back wages, overtime pay, liquidated damages, penalties, and interest.
As of now, Monarch Casino has yet to respond in court and has opted not to comment when approached by Casino.org.