Former Sands workers suing for back pay

Brian Seals

Friday, Dec. 4, 1998 | 11:57 a.m.

About 40 former dealers from the closed Sands hotel-casino sued their former employer in U.S. District Court, seeking tip back pay and vacation pay.

The suit is similar to one filed in 1996 on behalf of former Sands workers, some of whom were members of the Culinary Union. That case is currently being appealed by both sides.

The dealers were non-union employees that were denied class-action status in the previous case, said attorney Richard McCracken, who is representing the employees. However, two dealers were named in the original suit along with members of the Culinary Union and remain a part of that suit.

When the hotel-casino closed in 1996, workers were given 45 days notice of the closure rather than the 60 required by the federal Worker Adjustment and Retraining Notification Act, the suit alleges.

"The Sands has paid the employees some, but not all, of the back pay required by Section 5 of the WARN Act," the suit states.

In addition to tip back pay, the dealers are seeking July 4 holiday pay. The workers were given notice May 16, 1996, that the hotel-casino would close June 30 of that year. The workers are seeking back pay through July 16.

Last May, U.S. District Judge Philip Pro ruled in favor of the employees in the original suit, granting them tip income and holiday pay of about $85,000. The ruling ordered state penalties to be paid by the company for a delay in paying vacation time. Those penalties were later rescinded by Pro after the Sands asked for reconsideration.

The original suit is under appeal by the employees because the state penalties were rescinded, McCracken said.

Sands attorney Howard Cole has also appealed part of the original suit, questioning the order for tip and holiday back pay. Cole said the severance package given employees exceeded what the law required and the company wants to deduct that amount from any court-ordered judgments.

The Sands was closed and razed by owner Sheldon Adelson to make way for the Venetian hotel-casino. Employees of the former Sands are being asked to apply to the Venetian, but won't necessarily be given preference -- angering the Culinary Union.

The employees are being sent letters containing information on special interview times and how to arrange them, said Dave Newton, Venetian vice president of human resources.

"Each position at The Venetian will be filled with the best qualified applicant available," Newton's statement said.