Nevada court OKs policy on cash shortages

Friday, Nov. 16, 2001 | 10:35 a.m.

CARSON CITY -- A casino had the right to withhold money from the wages of a cashier if there were shortages in the cash drawer, the Nevada Supreme Court ruled Thursday.

The court overturned a decision by District Judge Michael Cherry, who ruled that the Orleans hotel-casino in Las Vegas had to refund $520 to former casino cashier Sandra Meranian.

The court also invalidated a $2,548 penalty imposed on the Orleans by a Labor Commission hearing officer for docking the pay of Meranian.

The Supreme Court said Nevada law permits an employer to withhold amounts equivalent to cash shortages from wages if the employee voluntarily authorizes the withholding in writing.

When Meranian was hired as a cage cashier in December 1996 at the Orleans, she signed a form acknowledging the casino's policy of withholding shortages from employees' payroll checks.

If a shortage was found, the casino would ask the employee to acknowledge the amount missing and to sign a slip authorizing the withholding of part of the paycheck.

Twice in 1998, there were shortages in the cash drawer of Meranian, who signed the statements authorizing the withholding of money from the paycheck to make up the difference.

Later Meranian was fired for other reasons, and she filed a claim with the state labor commissioner for return of the $520.

The Labor Commission had said the law requires an employer to compensate an employee for each hour of work, and it is unlawful for businesses to require workers to rebate or return any part of their wage.