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StumbleJudge delays ruling on Station Casinos wage lawsuit
Monday, April 26, 2010 | 3:10 p.m.
RENO – U.S. Bankruptcy Judge Gregg Zive has put a decision on hold in a lawsuit by thousands of current and former Station Casinos employees who say they were shortchanged in their pay.
Zive said he was inclined to allow a district court judge to decide if the employees should be given class-action status. But he withheld a ruling to see if opposing lawyers might reach a settlement.
Cecilia Lee, an attorney for the workers, told the judge “Certification needs to take place.”
Fred Neufeld, representing bankrupt Station Casinos, urged the judge to grant an extension of the stay order. But during a recess, Lee and Neufeld got together to work up an agreement on the processing of the case.
Zive, who intends to take senior judge status next January or February, said the issue has “significant and substantial factual and legal issues.” He said $60 million was at stake if the employees are certified as a class and are successful in their claim.
He estimated 9,000 employees were involved, but attorneys for the workers say it is closer to 20,000.
Neufeld said if workers are successful, there “will be some recovery but the vast amount will be wiped out” when the bankruptcy claims are settled.
The suit by the workers was filed about one week before the bankruptcy petition by Station Casinos, which is facing $6 billion in claims.
Zive encouraged the opposing lawyers to reach agreement and rescheduled the issue for May 4.
Neufeld, a lawyer from Los Angeles, said this issue of the employee pay dispute could wait three to four months until there is a clearer picture on the direction of the bankruptcy.
The suit by the workers alleges that if an employee checks in early for a shift, he or she is not credited with the time. And the same holds true of the worker leaves later.
Employees claim they are the victims of a “rounding” pay system. If an hourly worker arrives up to 14 minutes before the quarter hour, the computer automatically rounded that time forward to the nearest quarter hour. And if the worker checks out past his or her appointed time, the time is rounded back to the nearest quarter.
In the current filing with the bankruptcy court, Station Casinos reported it lost $5.6 million in February, down from the $11.6 million reported in the previous month.
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This BK judge seems to be in the pocket of the Ferttta's. He is overly accomodating to them.
tvegas,
How about liquidate the company and pay the secured claims first, as the law requires, then the unsecured claims. Bankruptcy law puts employees at the third tier for payment for unsecured debts:
"(3) wages or commissions of employees of the debtor that are earned within 90 days before the date of a bankruptcy filing or the date of cessation of the debtor's business, whichever occurs first, to the extent of $4,000 for each individual or corporation"
Unfortunately, they would be screwed under this arrangement. They are probably slightly better off under the judge's current ruling.
so let me see if i have this right...
Employees who are scheduled to work starting at 8:00am but show up on their own at 7:45am and without approval, clock in early and expect to be paid from 7:45am when they were to start at 8:00am??? huhhhhhh?? What am i missing here??
Sounds like the exployees will lose this one as they should. Why should the company pay? If Stations lost this lawsuit, that would open up the door for all employees at all companies to show up whenever they want and expect to be paid. That is ludicrous.
Unless you have received approval to arrive and clock in early, you clock in (and should only get paid) at your scheduled time. I remember when i worked at a strip hotel way back in the 90's and you not only had to clock in, but sign in when you arrived for your shift in your department. this allowed for the sometimes lengthy travel time in these large casinos from the employee entrance to your department. I then got paid (and written up if i were late)based on the time i signed in. I know i never expected to get paid for showing up 15 minutes early.
Claimants...your begging on this one.
The employee's are "victims" of rounding? This one is as old as the hills and bespeaks their mentality as trying to get a piece of $60 million for work not performed.
By hotel101, you are a total idiot who knows nothing of working in a casino. Many casinos require employees to show up early, before clocking in, to count down banks, preshift meetings etc. They are not allowed to clock in until their scheduled shift actually begins and conversely, some employers insist that employees clock out and then come back to work to finish their job, be it paperwork or reconciling banks. What the casinos are doing is illegal and Stations is dragging the lawsuit until they finalize bankruptcy. After bankruptcy, I guarantee Stations will state that the old company (Station Casinos) no longer exists and the newly formed company (Fertitta Gaming) is not liable for debts of Station casinos, thereby negating any claims against the company, guilty or not.
By tvvegas is correct, Stations has the judge in their pocket.
I used to work for Stations. I worked in the cage. They had you clock in 14 min before your shift so that you could count down your drawer. You had to stay 14 min. waiting for the next person to count down the drawer. You weren't allowed out of the window until 5 min prior to the end of your shift. It takes some time to count a drawer that large. Stations has been ripping off their employees for a long time.