Atlantic City’s Ocean Casino Resort is facing a new proposed class-action lawsuit alleging that its tip-pooling structure improperly shifts labor costs onto dealers, in violation of both federal regulations and New Jersey labor laws.
Lydia M. Colon, a table games dealer at the property, claims the casino requires employees to participate in a mandatory tip pool while paying some workers below the state’s full minimum wage through the use of a tip credit, according to the complaint.
Tip Pooling Dispute
The lawsuit describes a routine work structure in which dealers operate in 60-minute “strings” at gaming tables followed by 20-minute paid breaks away from the table. During these breaks, employees remain on the clock but are unable to earn tips because they are not actively dealing games.
Colon argues that this arrangement effectively prevents dealers from generating tips for roughly one-quarter of their paid working time, even before accounting for additional non-tipped responsibilities such as meetings or downtime.
Under New Jersey law, employers are only permitted to apply a tip credit if the majority of an employee’s duties involve direct customer-facing, tip-generating work. If more than 20% of an employee’s time is spent on non-tipped tasks, the employer may be required to pay full minimum wage without relying on tips. Importantly, tips are legally considered the property of employees, not employers.
The complaint also challenges the casino’s handling of the tip pool itself, alleging that dealers are required to count pooled tips and are compensated for this administrative task using money taken from the same tip pool. The plaintiff argues this practice effectively allows the casino to use employee tips to offset operational costs.
Federal guidelines from the U.S. Department of Labor similarly restrict tip-pooling arrangements, allowing tip credits only when employees receive sufficient combined wages and tips to meet minimum wage requirements. Employers may only include regularly tipped employees in such pools and are prohibited from retaining tips for non-permitted purposes.
Multi-Million Dollar Claim
As of January 1, 2026, New Jersey’s minimum wage stands at $15.92 per hour for most workers. For tipped employees, employers using a tip credit must provide at least $6.05 per hour in direct wages, with tips making up the remainder.
Colon is seeking compensation for allegedly unpaid minimum wages and overtime, as well as recovery of tips she claims were improperly handled under the casino’s system. The lawsuit also requests liquidated damages, interest, and attorney fees on behalf of a proposed class of affected dealers.
The complaint states that the disputed amount exceeds $5 million, meeting the threshold for federal court jurisdiction, though the total potential damages have not been fully determined.
Ocean Casino Resort has been contacted for comment, according to Casino.org.
