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CORRECTION -- 05/19/07 -- A story about tip-pooling at Wynn Las Vegas in Friday's Business section contained an error. The full name of a former assemblyman cited in the story is Jack Lund Schofield, and he is currently vice chairman of the state’s Board of Regents.

Wynn faces dealer appeal

Two take tip feud to Supreme Court

Two dealers at Wynn Las Vegas are taking their challenge of the resort's new tip-pooling policy to the Nevada Supreme Court.

Attorneys for Daniel Baldonado and Joseph Cesarz delivered a series of briefs to Wynn Resorts Chief Executive Officer Steve Wynn's attorneys and the Supreme Court on Tuesday, arguing the gaming developer violated state law.

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  • "The legislative intent was clear," said Reno-based labor attorney Mark Thierman, who represents the dealers. "It was not intended to be a subsidy for management employees. Tip sharing is not an excuse for tip taking."

    The appeal includes a brief by two former state assemblymen who argue that a state law revision in 1971 used in tip-pooling cases has been misinterpreted by the courts.

    Former Assemblymen Donald Mello and Jack Schofield claim in the brief that revisions resulting from an Assembly bill they authored were intended to prevent an employer from taking tips from one group of employees and it giving to another.

    The appeal arrives the same week that dealers voted 444-149 to ask the Transport Workers Union of America to represent them in contract negotiations with Wynn Las Vegas officials.

    The National Labor Relations Board has until next week to certify the election results.

    While losing the fight to stop his 700 dealers from forming a union, Wynn has continued to argue that the new policy is on solid legal ground.

    "The company feels the decision (with tip-pooling) was correct and so we have no choice but to go forward," said Greg Kamer, a Las Vegas-based labor attorney representing Wynn Las Vegas. "We did everything lawful and we're going to press on with our defense of their challenge."

    The case will probably not be heard until after the summer. Both sides still need to file additional briefs.

    On Dec. 6, District Court Judge Douglas Herndon dismissed a lawsuit brought by Baldonado and Cesarz after finding during a 70-minute hearing that dealers are not contract employees and that state law allows casinos to change their tip pooling policies.

    The appeal reiterates the plaintiffs' arguments made in District Court: that dealers should be paid what they earn, Wynn Las Vegas is violating state law by withholding earned tips, and sharing tips with supervisors is illegal.

    Wynn executives added certain casino managers to the casino's tip-sharing pool on Sept. 1 in an attempt to correct a pay disparity between dealers and their supervisors.

    Wynn dealers said they were earning $100,000 or more per year, mostly in tips, but the policy change cut their pay as much as 20 percent.

    Critics of the new policy argued that the gaming company should have raised managers' pay, not broadened the tip pool.

    Proposed legislation in Carson City by Assemblyman Bob Beers, R-Henderson, that would ban the tip-sharing agreement died in committee. An attempt to revive the bill may have died after a hearing in the state Senate was canceled last week.



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    Gary wrote on June 20, 2007 01:24 PM: Lawsuits are inevitable when our judges are allowed to rule that the customer's tip should not be regarded as the property of the person to whom it has been presented.

    Such ruling actually deprive both individual workers and groups of workers from claiming that their employer is taking "their" tips.


    When tips are errantly disregarded as the property of the worker who was presented the tip, an employee has no claim that his emplyer is taking "his" tips. Likewise, groups of workers cannot claim that their employer is taking "their" tips for the sole evidence substantiating that the tips should be regarded as their property is being disregarded.


    Dicedealer wrote on May 18, 2007 05:58 PM: This is to teeples...bite me. You have absolutely no right to make blanket statements about people you don't even know. I am a dealer and I do not condsider myself "greedy" "pompous" or "whiny". We are simply making a living just as everyone else. And as for your belief that we should share our tips with those oh so deserving floor supervisors keep in mind one thing...NO ONE FORCED THEM TO TAKE A PROMOTION. If you take a promotion you forgo tips. That is the way it has been for decades. I don't see the beverage manager taking tips from his bartenders or cocktail waitresses. So why are dealers being targeted? We have a much harder job and we can't just walk away from an obnoxious player. You are just the classic example of corporate America....screw the peons for your own profit. Floor people should not ever be allowed in the tip pool. If they don't like that, then they shouldn't have accepted the promotion it is that simple. And since they did, quit complaining that your dealers are making more money than you are. It is not true in all casinos, but it is true in some.


    Rick Blum wrote on May 18, 2007 05:26 PM: I'm not a dealer. I am a businessman with 35 years of experience behind me.

    If I want the best, I have to pay the best. If I don't pay, my business suffers.

    This said, I can appreciate how Wynn wanted to pull the money from the market to raise the pay of management. Unfortunately, he did not take new market money. He took existing market money, that was not his to take - by handshake if nothing else - and now his corporate image will pay the price.

    The price I speak of is bad name recognition, extra expense in dealing with unions, and in the end, most likely, run-of-the-mill employees that fill in behind those who leave for other lucrative assignments.

    Is there another negative here? Yep! All the politicians who are on Wynn corporation teet sucking their living are coming into the light. And like cockroaches, light is bad for politicians who - in the end - will reseek the dark where they can hide and pretend to have meaning to the masses - unchallenged. You know that old government saying, "We are here to help!"

    In closing, if Steve or Elaine are reading this, here is my suggestion. Own UP! Say it was a bad idea. Reverse your decision and pay back the pool over say 1 years time from smaller deposits. Give your management a raise out of corporate funds. It's OK to make them actually work for it and not just sit around smoking and bitching if that is what they are doing.

    Or, in the alternative, computerize the job using voice/picture ID protocol and RFID name tags. Either way, there is a better way and it starts with just owning up to the boo-boo and moving on.

    Rick


    Craig S. wrote on May 18, 2007 04:08 PM: Let's Be Serious For One Moment Here. Steve Wynn Makes How Many Millions A Year? So Rather Than Giving Back To The Employees That Helped Make Him. He Comes Up With A Plan To Give His Managment A Raise Without Coming Out Of His Own Pocket.(The Only Winner There Is Mr.Wynn Himself) Bottom Line Is He Is Showing 0 Percent Respect For His Employees Whom Which He Would Go Bankrupt Without. In A Sorry,Selfish,Pathetic Attempt To Make More Money For Himself. Anybody Who Says The Dealers Are Complaining Too Much Probably Wouldnt Even Stand Up For There Own Rights. My Opinions Above Are The Way I See It.


    Tamara P wrote on May 18, 2007 02:55 PM: Let us not forget, when Wynn opened his property, he wanted "Only the Best" working for his extravagant resort and with that, he was the one that offered these Dealers $100,000 a year. Many Dealers that were selected took the lucrative job, and rightfully so. After adjusting their lifestyles accordingly, which may have included having another child or maybe a more expensive house, Wynn takes it away, just like that, no notice, and if anyone talked to him about it in an open Forum meeting, they were harassed and some FIRED!!! Stop saying that these dealers were Greedy, they were promised a certain lucrative pay for their experience, If changes were to be made surely Mr. Wynn could have done something over a time period and let people adjust accordingly!!!


    David R Huntington wrote on May 18, 2007 12:33 PM: Most casino employees, elgible for tips, are under tipped period! If a server in a restaurant wa stiffed as much as casino employees, there would not be any servers. the general public needs to understand that tipped employees are grossly underapid by the cheal casinos hiring them. the casinos rely on the tips to suppliment the salaries paid to the employees. Is is not bad enough the public pays a large portion of employees salary thru tips? Then Wynn has the audacity of confiscating those tips and distributing them as he wishes. Next thing you know, the casinos will be charging employees a fee for the privilege of working there much the same as strip joints charge dancers.


    Daryn Jones wrote on May 18, 2007 11:24 AM: John Teeples of Arizona, I agree with your assessment of the mentality of the majority of dealers. When I first got into gaming, I whined about the stiffs, and I whined about management, and I whined about everything. I would have whined in whatever profession I would have worked. However, I persevered as a dealer and some 28+ years later, I have a new understanding of the job. I appreciate the people who do toke and I realize that the stiffs are necessary. After all, if the stiffs outnumbered the Georges, there would be no dealers. it is a fairly good job; the working condition are usually nice. I have eaten in many help's halls and have never complained. If the food looked unappetizing, I didn't eat it. Because I was tired of having to inhale my food on what was left of my break, I started brown bagging my own lunch.

    As a dealer, I too am weary ot whining dealers. However, in this case, the dealers are right. I don't think that punishing the Wynn dealers for other dealer's immature ungrateful attitudes by subsidizing managment with stolen money, is an effective way of changing the world. Some people nevere get it when they have it good, but punishing them sure won't get the job done either.


    arteth_bey wrote on May 18, 2007 08:20 AM: I agree that Wynn looks like a lunatic or worse a politican. Am I to think that he wasn't on the square when he admitted that he was wrong?

    This is about what is right. The dealers were hired with certain expectations concerning the distribution of their tip pool. I'm pretty sure that they understood that it would be split only among dealers. The supervisers should have been given a raise from the owner's revenue, not from the dealer's earnings.

    One wonders how the legislature can ignore this? Campaign contributions, I would suppose.


    Blndknkout wrote on May 18, 2007 07:41 AM: How can Steve Wynn still be defending his "tip sharing" policy after he stood up in front of ALL his dealing staff last week, two days before the union vote, and admitted that the idea had been "a BIG mistake" and he was "VERY SORRY" is this guy a complete LUNATIC????


    ray wrote on May 18, 2007 06:32 AM: The critics are correct: raise the salary of the bosses. wynn should use some of his and his top execs salaries to pay the bosses a better wage than the dealers. Wynn pays his enslaved architect 450k/year plus stock option and the guy has nothining to do that affects the bottom line, nad that's the tip os the iceberg. the dealers and their bosses are in the "pits" 24/7. raise their pay..........


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