MGM Resorts is in hot water after a waitress at their Maryland property claimed the casino took back a $76,000 tip she received and returned it to the customer. The gaming giant has refuted these allegations but hasn’t shared their side of the story yet.
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Details of the Disputed Tip
Tajia Mackyeon, a cocktail waitress at MGM National Harbor Resort & Casino, sued MGM, saying she was made to give back a large tip she had received from a high-rolling baccarat player. The incident reportedly took place on April 13. Mackyeon claims the player, who was placing large bets and winning, tipped her $76,000 in chips. Despite verifying the player’s intention multiple times, she was later asked by her supervisors to surrender the chips, which were then allegedly returned to the patron. The lawsuit argues this act breached the Fair Labor Standards Act and seeks $1.1 million in damages citing severe distress caused by the incident.
MGM’s Defense
On May 29, MGM Resorts responded to the lawsuit, denying Mackyeon’s version of events. The casino refuted her assertion that the chips were a tip and contested the claim that the player was having a winning streak. Despite these denials, MGM hasn’t offered their account of what exactly transpired. They maintained that their actions were lawful, citing “legitimate business reasons” for their handling of the situation. And mGM stated there’s an ongoing “bona fide, legitimate, and good faith dispute” regarding the obligation to pay the tip.
Regulatory and Legal Context
The Fair Labor Standards Act, which Mackyeon’s lawsuit references, generally prohibits employers from keeping workers’ tips. However, MGM’s assertion of a “legitimate business reason” hints at potential interpretations or loopholes the company might explore. Historically, such disputes have landed various casinos in regulatory troubles—a pattern the industry knows well.
Unanswered Questions
The case is now entering its discovery phase, where both parties are set to present evidence and witness testimonies. What’s still unclear is MGM’s detailed account of the event and the precise legal footing they plan to stand on in court. Whether Mackyeon’s distress claim holds or MGM’s defense prevails could set precedent for future tip disputes in the industry. The court proceedings are scheduled to continue later this year, with both sides likely to dig deeper into the details of the incident.
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