MGM Resorts ordered to rehire whistleblower

OSHA orders casino company MGM Resorts to rehire whistleblower who reported SEC rules breach

LAS VEGAS (AP) -- The Occupational Safety and Health Administration on Thursday ordered MGM Resorts International to rehire a whistleblower and pay $325,000 in restitution.

OSHA said the casino giant fired a worker at the condominium subsidiary Signature at MGM Grand for speaking up about co-workers allegedly violating Securities and Exchange Commission regulations.

The employee told a supervisor that colleagues were forecasting to potential buyers, telling them about expected revenue and occupancy rates, even though they were not legally allowed to do so. Only licensed security brokers can give out this kind of information.

The employee also reported pressure to engage in the illegal behavior, according to OSHA spokeswoman Deanne Amaden.

Amaden, whose office oversees California, Nevada, Arizona and Hawaii, said this is the first whistleblower case involving forecasting she has seen in her 16 years at the agency.

MGM is expected to appeal.

"We view this preliminary finding as fundamentally wrong on the facts and the law of this matter," the company said in a statement.

But MGM will still have to immediately offer to rehire the employee and make the $325,000 payment. OSHA also ordered the company to wipe the employee's record, and post notices assuring workers of their rights as whistleblowers under the Sarbanes-Oxley Act.

Ken Atha, OSHA administrator in San Francisco, said on Thursday that the decision reaffirms the right of workers to report SEC violations.

"This employee tried to ensure the employer was following the law and paid a hefty price for speaking up," Atha said in a statement.

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Hannah Dreier can be reached at http://twitter.com/hannahdreier

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