Monarch Casino Black Hawk Hit with Class Action Over Dealer Pay and Tip Credit

A dealer at Monarch Casino Resort Spa Black Hawk has filed a proposed class action accusing the Colorado property of systematically underpaying tipped employees through unlawful tip-credit practices, unpaid pre-shift work, and improper tip pooling.

The lawsuit, filed Monday in the US District Court for the District of Colorado, was brought by former dealer Ryan Hyde on behalf of himself and other past and current employees.

The complaint alleges the casino’s payment practices violated the federal Fair Labor Standards Act (FLSA), Colorado wage laws, and the state’s Healthy Families and Workplaces Act (HFWA).

Hyde argues Monarch failed to meet those requirements, meaning dealers should have received the full minimum wage rather than the reduced tipped wage.

Tip Credit Under Fire

At the heart of the suit is Monarch’s use of the “tip credit,” which allows employers to pay tipped workers below the standard minimum wage, provided they meet strict legal requirements.

Hyde argues Monarch failed to meet those requirements by not properly informing workers how the tip credit operated, failing to provide updated notices when pay rates changed, and neglecting to display required workplace notices. Thus, he contends dealers should have received the full minimum wage rather than the reduced tipped wage.

“As a result of these violations, Monarch Casino and Monarch Black Hawk lost the ability to use the tip credit,” the complaint states, arguing the company must “compensate workers at the full minimum wage rate, unencumbered by the tip credit, reimburse them for all work-related expenses, and reimburse them for all tips contributed to the invalid tip pool.”

Hyde further alleges dealers were forced to share gratuities with supervisors who occasionally worked dealer shifts, rendering the tip pool unlawful.

“A supervisor holds a non-tipped position and is ineligible to share in the tip pool,” the complaint states. It also alleges customers were never notified in writing that their tips would be pooled, as required under Colorado law.

‘Unpaid Work’

Hyde also claims dealers were required to arrive 15 to 20 minutes before their shifts to collect tip boxes, attend mandatory meetings, and receive table assignments before clocking in, leaving them performing work for which they were neither paid nor had any opportunity to earn tips.

The lawsuit argues those activities are compensable under Colorado law because they were mandatory and performed for Monarch’s benefit.

In addition to the wage claims, the lawsuit alleges Monarch underpaid sick leave and vacation pay by excluding tips from employees’ regular rate of pay.

The proposed suit seeks to represent tipped employees nationwide under the FLSA, along with several Colorado-specific classes, and seeks back wages, overtime, liquidated damages, penalties and interest.

Monarch Casino has not yet responded in court and declined to comment when contacted by Casino.org.