The Complaint alleges that the Setting Entities violated the FLSA, MMWL, and/or ERISA, by (1) illegally deducting costs to obtain, maintain, and renew state-issued Missouri Gaming Licenses (defined below) from employees’ wages, which resulted in violations of both the FLSA and Missouri state law; (2) creating a mandatory tip pool policy which required table games dealers to pool their tips and then used those tips to pay the Paid Time Off (“PTO”) of certain non-tipped, manager and supervisor employees; and (3) breaching their fiduciary duties under ERISA through a wellness program that discriminated against employees based on an impermissible health factor when it failed to provide a reasonable alternative standard with respect to its tobacco surcharge policy. The Settling Entities deny all the claims asserted in the Complaint and maintain that all of their respective employees were paid, and have always been paid, correctly and in accordance with the law, and that the wellness program at issue complied with all applicable law.

You may be eligible to receive a payment if you belong to one of the following:

1. All persons employed and paid a direct cash wage of the applicable Missouri minimum wage or less per hour from March 31, 2017 to September 24, 2021 at Argosy Riverside or Hollywood St. Louis, and for whom a deduction was taken from their wages for any amount associated with initially obtaining or thereafter renewing a Gaming License;
2. All persons employed as Table Games Dealers at Argosy Riverside from March 31, 2017 through April 23, 2021, and who participated in the Table Games Dealer Tip Pool;
3. All persons employed as Table Games Dealers at Hollywood St. Louis from March 31, 2017 through October 31, 2019, and who participated in the Table Games Dealer tip pool; and/or
4. All participants in Penn National Gaming, Inc.’s group health plan for plan years 2016, 2017, 2018, 2019, and 2020 who had a tobacco surcharge deducted from their wages.

The Settlement Amount, $5,500,000 in total, fully resolves and satisfies the attorneys’ fees and costs approved by the Court, all amounts to be paid to individuals covered by the Settlement, Court-approved service payments, interest, and the Settlement Administrator’s fees and costs. The Settlement funds are being divided among the individuals covered by the Settlement according to an allocation formula.

The allocation formula takes into account (i) the total amount of money that you had deducted from your pay associated with initially obtaining or thereafter renewing a gaming license between March 31, 2017 and September 24, 2021; (ii) if you were employed as a Table Games Dealer and participated in the Table Games Dealer tip pool, the number of hours that you worked at Argosy Riverside (from March 31, 2017 through April 23, 2021) or Hollywood St. Louis (from March 31, 2017 through October 31, 2019); and/or (iii) the total amount of any tobacco surcharges that you had deducted from your pay during Plan years 2016 through 2020. The Settlement Agreement contains the exact allocation formula. You may obtain a copy of the Settlement Agreement here.

Half of each Settlement Check for damages associated with the wage and hour claims (gaming license and tip pooling claims) will be treated as back wages for which you will receive an IRS Form W-2, and the other 50% will be treated as interest, any applicable penalties, liquidated damages, and other non-wage relief, and reported on an IRS Form 1099. In addition, 100% of each Settlement Check for damages associated with the ERISA claim (tobacco surcharge) shall be treated as back wages for which you will receive an IRS Form W-2. Neither Class Counsel nor the Setting Entities make any representations concerning the tax consequences of your settlement payment. You are advised to obtain personal tax advice prior to acting in response to the notice you received.

To receive proceeds from the Settlement, you do not have to do anything in response to the Notice.

If the Court grants final approval of the Settlement and you do not submit an written request to opt out of the settlement (described in Section 8 of the Notice), you will be bound by the release of certain federal, state, and local law claims described in Notice, and you will receive in the mail a Settlement check representing your share of the Settlement fund. If you choose to cash or deposit that check, you will further be bound by the release of federal FLSA claims described in Section 7 of the Notice.

If you do not request exclusion from the Settlement but believe the proposed Settlement is unfair or inadequate in any respect, you may object to the Settlement by filing a written objection with the Court and mailing a copy of your written objection to the Settlement Administrator. All objections must be signed and include your address, telephone number, and the name of the Litigation. Your objection should clearly explain why you object to the proposed Settlement and must state whether you or someone on your behalf intends to appear at the Final Approval Hearing. All objections must be filed with the Court, received by the Settlement Administrator, and postmarked by no later than April 30, 2023 (If you were sent a Corrective Notice, the deadlines to ask to be excluded and to submit an objection have been extended to May 19, 2023). If you submit a timely objection, you may appear, at your own expense, at the Final Approval Hearing, discussed in the Notice. Any Settlement Class Member who does not object in the manner described above shall be deemed to have waived any objections and shall forever be foreclosed from objecting to the fairness or adequacy of the proposed Settlement, the payment of attorneys’ fees, litigation costs, the Court-approved service payments, the claims process, and any and all other aspects of the Settlement. Likewise, regardless of whether you attempt to file an objection, you will be deemed to have released all of the Released Claims unless you request exclusion from the Settlement.

The Court has determined that the lawyers at the law firms of Stueve Siegel Hanson LLP and McClelland Law Firm, P.C., are qualified to represent you and all individuals covered by this settlement. These lawyers are called “Class Counsel.” You will not be charged for these attorneys. You do not need to retain your own attorney to participate as a member of this class action. However, you may consult with any attorney you choose at your own expense before deciding whether to opt out of this settlement.

George A. Hanson
Alexander T. Ricke
Stueve Siegel Hanson LLP
460 Nichols Road, Suite 200
Kansas City, MO 64112

Ryan L. McClelland
Michael J. Rahmberg
McClelland Law Firm, P.C.
200 Westwoods Drive
Liberty, MO 64068