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Steve Wynn meets with the media in a villa at Wynn Las Vegas on Wednesday, April 27, 2011.
Sunday, Aug. 14, 2011 | 4:19 p.m.
Sun Archives
One thing is for certain after the latest round of legal wrangling over Steve Wynn’s casino tip-sharing policy: The litigation will continue well into 2012.
Attorneys spent most of Friday afternoon arguing in Clark County District Court about whether state law permits Wynn Resorts Ltd. to require hundreds of dealers at Wynn Las Vegas and Encore to share tips with supervisors.
The judge hearing the dispute, Kenneth Cory, said he may issue a ruling in a month or so — but even then it’s widely known the losing side will appeal to the Nevada Supreme Court.
"Whatever I say is nothing more than a conduit to get to the real answer," Cory said.
The Supreme Court typically takes many months or longer to reach decisions, which is why the Wynn tip issue won’t be resolved until sometime in 2012 at the earliest.
While at least two smaller casinos in Nevada had required the sharing of dealers’ tips with supervisors in the past, Wynn’s policy implemented in September 2006 was the first such effort on the Las Vegas Strip.
The policy is aimed at boosting pay for supervisors who otherwise would earn less than the dealers they supervise. Dealers are typically paid minimum wage or slightly more, with the bulk of their pay coming from tips.
It’s common for workers in the same job classification, waitresses for instance, to pool tips.
Giving supervisors a share of the tips is less common, with Friday’s debate focusing on whether that directly benefits the finances of Wynn and whether those supervisors are in the direct chain of staff responsible for customer satisfaction and presumably tipping levels.
A lawsuit over the Wynn tipping issue has bounced from the District Court to the Nevada Supreme Court to the office of Nevada’s Labor Commissioner.
Michael Tanchek, state labor commissioner at the time, in July 2010 upheld the tip-sharing policy.
A small group of dealers appealed, which is why Cory is now reviewing the issue.
The dealers say that since Wynn is boosting supervisors’ pay with tips earned by the dealers, this is an obvious direct benefit for Wynn and a taking of their money as the company doesn’t have to pay for the raises with its own funds.
"The dealers as a group are losing out here," one of the attorneys for dealers challenging the policy, Leon Greenberg, told Cory. "The result of the policy is to simply enhance the profit and lower the operating costs of the employer."
At issue is some $5 million per year that Greenberg said is being diverted from dealers to their supervisors, costing each dealer about $15,000 per year.
The policy was aimed at boosting the pay of casino supervisors from about $60,000-$65,000 to $85,000-$90,000, or about what the dealers were making before the change, he said.
Wynn had provided the supervisors with a $5,000 raise, with the rest of their raise coming from the dealers’ tip pool, Greenberg said.
Gregory Kamer, attorney for Wynn, tried to shift the focus of Friday’s arguments from Wynn doing something to hurt dealers to Wynn doing what was best for the company.
"This is not a David v. Goliath case," he said. "Corporations are people. The corporation that made this decision consists of 9,000 Wynn employees and 6,000 Encore employees."
He said just 200 or so dealers were involved in the dispute, while "there are 400 dealers at Wynn who did not want any part of this dispute" and 400 more at Encore who operate under the same program and have not complained about it.
While supervisors characterized as "employers" are not allowed to take or share in employees’ tips, it’s clear in this case the casino supervisors are not "employers" as they aren’t involved in hiring and firing, Kamer said.
In fact, the supervisors have substantial customer satisfaction duties and that’s why they’re in the direct chain of staff responsible for customer satisfaction and eligible to share in and receive tips, Kamer said.
This is especially true given a reorganization of Wynn’s casino department in conjunction with the change in the tip policy, he said. Under that change, floor supervisor and pit manager positions were eliminated and these positions were replaced with new Casino Service Team Leader (CSTL) positions.
"Just because you give a tip to one person doesn’t mean others were not responsible for the good service," he said. "They’re part of that service chain."
Kamer urged Cory not to legislate from the bench, noting the Nevada Legislature has repeatedly had the chance to change the law to outlaw tip-sharing arrangements like those at Wynn – but has not done so.
Cory commented during the hearing that there appeared to be a lack of case law that would directly guide his decision and he questioned attorneys repeatedly about whether Tanchek had improperly refused to consider some evidence.
"Aren’t I bound by what the labor commissioner says, unless he contravenes the law – or there’s a lack of substantial evidence in the record?" the judge asked.
But he told Greenberg: "I can see you advancing an argument that as long as it really affects directly the bottom line of the casino -- that is they get to supplement the salary of CSTLs with money they take from dealers -- that’s certainly a direct benefit."
I tip a lot less now a days because of this. If my tip isn't going to who I give it to, what's the point.
Playing blackjack is a very social game because players,+ dealers are both trying to win together. Tips are what keep minimum wage dealers in the game. %@)( the trolls behind the camera.
Most of the tip money would have ended up in the casino chip rack if not given to the dealer. Someday Wynn will realize that and institute a "No Tipping" policy. He could raise the dealers' hourly pay rate to $12 or $13 and be way ahead. The customers would love it.
Tell Stevie to pay the folks more and quit stealing.
I top a lot more now a days because of this. If my tip isn't going to all the people who actually help to provide outstanding service, what's the point.
Corporations are people. They just have more rights.
How about this, I won't play at Wynn properties. If the supervisors, who are classified as 'exempt' from wage and hour laws by definition, want the pay of the dealers then be a dealer, not a supervisor stealing the dealers money.
Vote with your feet and stay away.
Well that is a NON issue now.. Harrahs has their hands in that mess.. I wonder why they are so quiet about that takeover?
You sure dont hear much from the pit bosses do you. They should have their own break room for their own safety. Why do the dealers hang out with them during breaks?
They wanted the TWU and now they have to deal with it. Weakest union there is! Cant blame anyone but themselves.
Are the supervisors (or whatever they're choosing to call them these days) working for the same hourly (usually close to minimum) wage that the dealers are working for? If not then I say NO they should NOT share in the tips - not unless they put everyone on a level playing field and pay them all the same. Why should someone working for far less then the 'management crew' have to share in the tips? And how is the 'management crew' supposed to make the UNbiased calls they may need to make in the case of a dispute? How can they be expected to remain UNbiased now that part of THEIR OWN PAY is being affected? Steve Wynn, with all his money, can surely afford to pay his management a decent pay and wouldn't even have to come up with some bogus new job title to cover their butts.
Corporations are people??? What is this guy doing, quoting Mitt Rommeny? All tea carpetbaggers need to go back to HELL!! Ps: I wasn't quoting you antigov, but the person who said it.
Brother Wynn is following the gospel of Supply Side Jesus and his "trickle up" economic theory. Yes, brothers and sisters, corporations are people and they have souls, just like you and me. Brother Wynn is filled with the Holy Spirit when he reaches into the tip jar to pay his salaried employees from worker's wages. This "trickle up" wage theory frees up more cash for Wynn Resorts to engage in Christian acts.
Yours in Christ,
Rob Whitetrash
Pahrump Deluxe Trailer Park - we built a shrine to Brother Wynn from abandoned auto parts.