U.S. Department of Labor Investigation Results in Casino Operator Paying $175,128 in Back Wages and Damages

HAMMOND, IN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Las Vegas-based Caesar's Entertainment Group will pay $175,128 in back wages and liquidated damages to 889 employees at two Indiana casinos it operates, for minimum wage violations of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Horseshoe Hammond Casino in Hammond and the Horseshoe Southern Indiana Casino in Elizabeth made deductions from employees' wages to cover their costs for individual employees' casino gaming licenses required by the Indiana Gaming Commission. The license is non-transferrable, valid only in the establishment for which it was issued, and must be renewed annually. The casinos deducted 100 percent of the license fee from their employees' wages, creating minimum wage violations when those deductions brought the employees' pay below the federal minimum wage of $7.25 per hour.

Investigators determined 485 employees at the Hammond casino were due $45,938 and 404 employees of the Elizabeth casino were due $41,626. All employees will also receive an equal, additional amount in liquidated damages.

"Employers must pay employees the wages they have legally earned for all the hours they have worked," said Wage and Hour Division District Director Patricia Lewis in Indianapolis. "Employers can avoid wage violations by contacting the Department of Labor for compliance assistance – we offer a wide variety of tools and live consultation services to explain the rules clearly to them."

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.