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Nevada
regulators rule in favor of Summerlin's tip pooling policy
TATE OF
NEVADA
DEPARTMENT OF BUSINESS AND INDUSTRY
OFFICE OF LABOR COMMISSIONER
555 E. Washington Avenue, Suite 4100
Las Vegas, Nevada 89101
(702) 486-2650 • FAX (702) 486-2660
July 30, 1999
JACK M LIPSMAN VICE PRESIDENT
NEVADA CASINO DEALERS ASSOCIATION
1067 GRIFFITH AVENUE
LAS VEGAS NEVADA 89104
RE: Tip-Pooling at the Resort at Summerlin
Dear Mr. Lipsman:
This writing will acknowledge receipt of your letter dated
July 27, 1999 as
well as our subsequent discussions, and my investigation into your
concerns.
For your information, I am enclosing copies of pertinent cases
which appear
to address the very issue you have brought to my attention. Those
cases are:
1. Alford, et al., vs Harold's Club, et al
99 Nev. 6760, 669 P. 2d 721 (1983).
2. Cotter vs Desert Palace, Inc.
880 F. 2d 1142 (1989)
From my investigation and legal research, it appears that
an employer of at
will employees may require and establish a tip-pooling. The court
in Alford even
found that Harolds Club did not reap collateral benefits even
though it enjoyed
higher employee morale and lower employee turnover. The direct
benefit of paying a lesser amount would, in all likelihood, be
deemed such a collateral benefit. The court in Alford discussed
how it reviewed "extensively" the legislative history
concerning the enactment of NRS 608.160 as well as prior
legislation and ruled that "based on this construction of the
statute, the district court concluded that NRS 608.160 did not bar
the employer from imposing a tip-pooling agreement among employees
as a condition of employment."
Therefore, I believe that the Resort at Summerlin is not in
violation of NRS
608.160. If I can be of any further service to you in the future,
please do not
hesitate to contact my office at your convenience.
Very truly yours,
OFFICE OF THE LABOR COMMISSIONER
Gail Maxwell, Acting Labor Commissioner
GM/dh
Enc.
cc: Dianna Hegeduis, Dep. Attorney General
Jim Fonseca, Senior VP/COO of the Resort
at Summerlin.
We
strongly believe this ruling is completely wrong.
In our opinion, the Labor Commissioner has totally mis-interpreted
the protections granted to tip earning employees by NRS 360.180.
We are currently considering other options available to us.
Nevada Casino Dealers Association
1067 Griffith Avenue
Las Vegas, Nevada 89104
(702) 474-9766
Fax: (702) 474-9767
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