Station Casinos reaches settlement in employee wage suit

By Cy Ryan

Tuesday, May 4, 2010 | 11:14 a.m.

RENO - A settlement has been reached in a suit filed on behalf of thousands of current and former employees of Station Casinos who claimed they were shortchanged in their pay by the gaming company.

Fred Neufeld, attorney for Station Casinos, told U.S. Bankruptcy Judge Gregg Zive that the casino company has agreed to set $1.1 million aside to pay the employees for 180 days prior to filing for bankruptcy.

A Station Casinos spokeswoman said that in addition, the parties agreed to value the remaining unsecured claim in the lawsuit at $5 million covering workers dating to 2005. Neufeld said 10,000 current and former employees may be covered. It was not immediately known how much each employee would receive, or whether any unsecured claims will be paid in the bankruptcy.

Two former and one current employee filed the suit in Clark County District Court eight days before Station Casinos filed for bankruptcy. The suit said it was on behalf of 20,000 current and former employees.

Any movement in that suit in state court has been held up pending the bankruptcy hearing. Neufeld said the suit in state court would now be dismissed.

The suit said the casinos used a "rounding" of the hours employees worked. Under the system, an employee who clocked in between 8:53 a.m. and 9:07 a.m. was automatically credited to having started at 9 a.m. A worker who checked out between 4:53 p.m. to 5:07 p.m. was credited to have worked to 5 p.m.

Zive said in a previous hearing this claim would amount to $60 million. The attorneys for both sides announced the settlement today.

Zive will have to approve the agreement.