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Tip-rules switch broke pacts, labor lawyer says

No hint of court's position after hearing on Wynn case

A Las Vegas labor attorney told Nevada's high court justices Monday that Wynn Las Vegas illegally violated employment agreements with its dealers when it changed its tip-pooling policy in 2006.

The Supreme Court justices heard arguments Monday from attorneys for the Strip hotel-casino and two dealers who sued Wynn Las Vegas after it changed its tip-pooling policy in September 2006. The seven justices asked questions of attorneys for both sides during a 40-minute hearing Monday, but gave no indication which way they were leaning or when they might issue a decision.


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  • In late 2006, a Clark County District Court judge upheld Wynn Las Vegas' new tip-pooling policies, rejecting arguments that the hotel-casino's dealers are contract employees and that the new policy -- which reclassified some supervisors and allowed them to share some of the tip monies that had been given exclusively to dealers in the past -- illegally changed employment agreements.

    The justices could uphold a ruling by District Court Judge Douglas Herndon dismissing a lawsuit brought by dealers Daniel Baldonado and Joseph Cesarz.

    They could also overturn the lower court decision or send the dispute to the labor commissioner to resolve.

    During the Monday hearing, labor attorney Leon Greenberg restated many of the same arguments he made during the District Court hearing: the change in the tip-pooling policy violated an employment agreement drafted before the property opened and that the new policy forcing dealers to share tips with supervisors violates state law.

    "The tips no longer belong to the dealers, but to the Wynn, which distributed them as it saw fit," Greenberg argued.

    When Justice Michael Douglas asked Greenberg if the dealers were at-will employees, which would allow the casino to modify its hiring agreements, the attorney said the resort should have terminated all employees and asked them to reapply for their jobs if it wanted to change the employment agreements.

    That, however, would have opened the resort to unemployment claims and possible disruption in business, he said.

    Justices Ron Parraguirre and Nancy Saitta did question Greenberg's use of the words "policy" and "contracts," asking whether what employees signed could be classified as employment contracts.

    When the gaming company announced the new policy, it said the change was necessary because of the wide wage disparity between the property's dealers and supervisors.

    The resort's attorney, Greg Kamer, on Monday described the policy change as a "modification" that changed the title and duties of casino floor supervisors to team leaders.

    He also argued that the intent of the change was to improve customer service, and provide better game protection and greater accountability with front line casino employees.

    In response to a question from Douglas, Kamer said a California court decision last month saying Starbucks shift supervisors aren't eligible to share in baristas' tips does not apply to the Wynn case because California law clearly states that tips belong to the workers that received them.

    He added that he expects the ruling, which included an order for Starbucks to pay $105 million to coffee-servers in California, to be easily overturned on appeal.

    Casino developer Steve Wynn attended the hearing, entering and exiting the 17th-floor courtroom at the Regional Justice Center through a side emergency exit door.

    As soon as the hearing concluded, Wynn shook hands with his legal counsel, then took a private elevator primarily used by judges and their staff to exit the building, which allowed him to avoid a handful of protesters outside the courthouse.

    Wynn declined to comment on the hearing.

    In the District Court case, Herndon ruled that work agreements signed by dealers were not contracts of employment and that the resort's new tip policy was merely remedying an outdated system.

    The judge added that the dealers need to lodge a formal complaint with the labor commissioner if they wanted to claim they were being mistreated under Nevada's labor laws.

    Reno-based labor attorney Mark Thierman, a member of the legal team representing the dealers, said sending the dispute to the state labor commissioner would be a bad message for employees in the state.

    "They could say there is no private cause of action for any employee in the state of Nevada for violation of the labor code," Thierman said. "They could say no employee in Nevada could sue for the violation of labor law. Welcome to the wild, wild West."

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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    really now wrote on May 05, 2008 09:36 AM: There really is no doubt that Mr. Wynn is wrong in taking money from dealers to pay other employees. Dealers are valuable, do earn what they make in tokes, and deserve to keep what they earn. Many are quite educated with degrees and are as competent in their field as you are in yours. While Wynn is so wrong and so far off base here, he is still so much better than Landry's Tillman Fertitta who has destroyed the Nugget properties and is driving them into the ground. At least Wynn still takes care of the customer. Landry's doesn't take care of them nor the employee who he treats like slave's and respects even less. Want to work for a tyrant...go to the Nugget, then see how bad things can actually be.


    Another dealer wrote on April 11, 2008 02:53 PM: Ignorance. I see it everywhere. Most of the people I see posting and complaining the most are the non-dealers. Undeducated, unintelligent, waste of human flesh idiots. I'll tell you what, I'm smarter than you, more attractive than you, work harder than you, and made an intelligent decision to invest several years of my life learning the finer points of guest service as it pertains to dealing casino table games.

    I've invested as many years learning this business to qualify for a top dealing position as it would take to earn a Pre-Med Bachelor's. By now, I could be a full-fledged doctor. Am I intelligent enough? Hell yes. Am I determined enough? Hell yes.

    Should I feel lucky that I even have a job? I pity those who feel this way. I am a valuable asset to ANY company with which I choose to become employed, Wynn is no exception. Wynn should feel blessed that good people like myself, and many of my co-workers, chose to accept the job as offered.

    However, they do not. They feel, like the rest of you losers, that we somehow OWE them something, and should be GRATEFUL. What a joke. How about this: All the intelligent, good-looking, pleasant dealers leave Las Vegas leaving you with retarded ugly idiots to handle the multi-million dollar chip racks. Let them deal your games.

    I'm doubt you can comprehend the fallout of such action, as those of you who chose to post in such a vile manner are either worthless degenerate fleas, retarded dealers that can't get it right hence not progressing to a higher level, or "team leaders" who've become comfortable in your newly purchased Audis.

    I can't believe I'm wasting my time on you losers.


    David wrote on April 09, 2008 01:58 AM: we customers gotta shop around

    Yeah Douglas. I understand they have great BJ rules at the Western, where you belong.


    Ernest wrote on April 08, 2008 11:28 PM: Who really cares ??? Take it up with Wynn, and stop whining or find something else to do. Try to take being a dealer on your resume in a real company and you will get laughed out of the HR department !!!!


    Google User wrote on April 08, 2008 10:51 PM: 1) There's alot of astroturf here. Dealers do not make "$140K tax free" - that's simply a lie. Bacc dealers who worked full time the first year with many 12 hour shifts and sometimes a couple weeks before a single day off just broke $100K in total compensation - before Wynn started stealing their tokes.

    2) Who takes the money? Check the financial news. For years Wynn paid himself more then the entire profit reported to stockholders.

    Check out the book:

    Running Scared: The Life and Treacherous Times of Las Vegas Casino King

    3) To get a job dealing at the casinos you have to sign a 3 sided agreement between the dealer, the casino and the IRS about the toke pool and how the taxes will be taken out first.

    4) US Department of Labor Tip Fact Sheet

    "Retention of Tips: The law forbids any arrangement between the employer and the tipped employee whereby any part of the tip received becomes the property of the employer. A tip is the sole property of the tipped employee."

    http://www.dol.gov/esa/regs/compliance/whd/whdfs15.htm


    douglas wrote on April 08, 2008 09:22 PM: $5 for a beverage server toke ? huh ?

    mebbe the dealers should now apply for a spot as a cab starter/door man or beverage server. years ago at the original mgm [now bally's] i recall a male in some sort of beverage server's uniform. first i'd seen. come to think about it, i haven't noticed one since.

    with the dealer union protection and a "livable" wage, we fleas can patronize those non-dealer union joints. no sense in playing against that union caused, higher house edge on table games. the games are tough enough without that added vig.

    likely the various gaming boards, and of course the couple of dealer boards, will list the union houses. same as the newspapers and tv stations list the lowest gasoline prices in town. we customers gotta shop around.


    David Huntington wrote on April 08, 2008 08:25 PM: I no longer see the need to tip the dealers. Let the Union get them an extra .25 cents an hour and we can call in square.

    Now those lovely beverage servers, thats a different story,, they still get a a five spot each and every time.


    Stupidity is rampant. No wonder we have a boozer in the Mayors office and local politicians in the slammer. It wouldn't be difficult to scam most Las Vegans.


    No more `George' wrote on April 08, 2008 07:20 PM: Now that the dealers are represented by the TWU, please consider me "No More `George'".

    I no longer see the need to tip the dealers. Let the Union get them an extra .25 cents an hour and we can call in square.

    Now those lovely beverage servers, thats a different story,, they still get a a five spot each and every time.


    Hands wrote on April 08, 2008 07:05 PM: As a dice dealer making north of $140K a year (after split with the team leads) most of which is tax free, whats the big deal? The idiot Union and all this negative press is not needed. Betcha we are going to regret crossing the boss!


    Steve W. wrote on April 08, 2008 06:56 PM: Amazing to hear all this bit-hing and moaning by the dealers. Remember, this is an `at will' State.

    Be happy you aren't dealing 21 at some flea joint on Fremont.

    Remember, you can be replaced, quite quickly.


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