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Casinos try
more abuse!
July 19, 1999
Nevada Casino Dealers Association
1067 Griffith Avenue
Las Vegas, Nevada 89104
(702) 474-9766
Fax: (702) 474-9767
Brian McMullan, President & CEO
Resort at Summerlin
221 N. Rampart
Las Vegas, NV 89145
Dear Mr. McMullan:
The Nevada Casino Dealers Association wishes to
congratulate you on your opening. Please understand that we do not
wish to divert your focus from your other important duties but
there is a matter of extreme urgency we are compelled to bring to
your attention.
We recently received a report, which we subsequently
confirmed, that your casino’s policy requires that the total
compensation package for casino floor people is comprised of a
share of dealer’s tokes (tips) in addition to their normal
payroll wages. We also discovered that the floor pay
scale is in the $80/day range, an amount less than half the normal
pay scale for that position.
We understand that you have demanded acceptance of this policy as
a condition of employment. It is evident to any reasonable person
that by offering these employees a share of dealer’s tips as
part of their compensation you were able to hire them at a much
lower wage than would otherwise be possible. The conclusion we
draw from these facts is that the Resort at Summerlin lowers its
payroll costs by subsidizing floor pay with toke money. The
casino, therefore, directly benefits from dealer’s tips. This is
in direct violation of NRS 608.160 and constitutes a misdemeanor
offense. See "NRS608.195 Penalty." In addition to the
NRS, there are three court decisions which constitute compelling
case law on the subject.
They are:
1) Moen v. Las Vegas Int’l Hotel
Inc., 402 F. Supp. 157 (1975);
2) Alford v. Harolds Club, 99 Nev.
At 673, 699 P. 2d 721 (1983);
3) Cotter v. Desert Palace, Inc.,
880 F. 2d 1142, at 1145 (9th Cir. 1989)
In Moen, U.S. Federal District Court Judge Bruce Thompson
found that the statute was enacted….."to prevent the taking
of tips by an employer for the benefit of the employer."
(emphasis added)
In Alford, the Nevada Supreme Court expressly adopted the
Moen decision
supporting tip pooling as long as……"the employer does not
retain any part of the tips for his own use or reap any direct
benefit from the pooling." (emphasis added)
In Cotter, the U.S. Ninth Circuit Court of Appeals once
again affirmed the employer’s right to impose tip pooling but at
the same time they emphasized, "Forced tip-sharing does not
violate Nevada law or policy so long as the employer does not
retain any part of the tips for his own use or reap any direct
benefit from the pooling." (emphasis added)
Based on the weight of these facts it is clear that the
policy you have implemented is in violation of the law, both
statute and case law, as interpreted by the Nevada Supreme Court,
as well as the federal courts. Additionally, to our knowledge,
there is no other casino in the state which permits casino games
floor people to receive dealer’s tokes.
To summarize, allow me to say that it is our goal to ensure
that our members, and all other casino dealers in Nevada, enjoy
the full fruits of their labor.
We truly believe that the success and prosperity of all casino
dealers are inextricably linked to the success and prosperity of
their respective casinos. Any action which might compromise an
operator’s gaming license would hurt everyone involved and
should be avoided at all costs.
Therefore, we ask that you modify your policy and put an end to
the practice of using dealer’s tokes to reduce your costs and
enhance your profits. We ask that you cease and desist from this
policy immediately.
Respectfully,
Tony Badillo, President
Jack M. Lipsman, Vice President
Nevada Casino Dealers Association
Nevada Casino Dealers Association
Cc: Las Vegas Review Journal
Las Vegas Sun
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