Ocean Casino Resort Sued for Millions Over Dealer Tip Pooling Practices

• Dealers claim tip pooling cuts earnings during required non-tipped work time
  
• Lawsuit argues casino improperly uses employee tips to cover internal costs
  
• Case could impact how casinos apply tip credits under wage laws

Atlantic City’s Ocean Casino Resort is accused in a new lawsuit of structuring its tip-pooling system to “shift labor costs onto dealers” in violation of federal and New Jersey laws.

Lydia M. Colon, a table games dealer, claims in the proposed class-action suit that the casino requires dealers to participate in a mandatory tip pool while paying at least some of them below the state’s full minimum wage through a tip credit.

Bad Deal

Dealers commonly work a “string” of 60 minutes at a table followed by a 20-minute paid rest period away from the table, according to the lawsuit. During that time, dealers are on the clock but can’t earn tips because they’re not dealing games.

Colon argues that this setup effectively blocks them from tip-generating work for a quarter of their paid time, even before factoring in other non-tipped duties like meetings or idle periods.

The complaint also takes aim at how the tip pool itself is handled. It says dealers are required to count pooled tips and are paid for that work using money from the pool. Colon claims this amounts to the casino using employee tips to cover its own administrative costs.

Federal law also imposes limits on tip-pooling systems. The U.S. Department of Labor says employers can only take a tip credit if workers receive enough in wages and tips to meet minimum pay requirements. Employers may also require tip pooling only among workers who regularly receive tips and may not retain tips for other purposes.

Claim for Millions

New Jersey’s minimum wage rose to $15.92 per hour for most employees on January 1, 2026. For tipped workers, employers applying a tip credit must pay at least $6.05 per hour in direct wages, with tips making up the difference.

Colon is seeking to recover unpaid minimum wages and overtime, as well as tips she claims were misused under the casino’s pooling system. The lawsuit also requests liquidated damages, interest, and legal fees on behalf of a broader group of dealers included in the proposed class.

According to the complaint, the amount in dispute exceeds $5 million, the threshold for bringing the case to the federal court, though total damages are not specified.

Casino.org has contacted Ocean Resort for comment.