(Formerly NCDA / NFGE)



Management's Toke Policy
Is there a hidden agenda?

By LeOgreensing

  It is surprising how many dealers have little or no knowledge of the laws that protect their tips. Federal and state labor laws do provide some protection for an employees tips however, understanding what these laws actually do in the way of protecting an employees tips is a question that seems only answerable through our courts. Our courts have only answered in riddles, making the intent of these laws something of a task that is only for them to decipher. Tips are part of a work agreement offered to dealers in exchange for acceptance of a job paying a very low salary.

  In several court cases it was decided that since forcing dealers to pool their tips does not benefit an employer that the labor law protecting those tips did not prohibit an employer from imposing forced tip pooling on it's employees . And so dealers it seems have come to accept the decision by the courts to allow employers to force them to pool their tips. I feel there was a slight problem for the courts however.

  Labor law states that it is unlawful for any person to take all or part of any tips or gratuities bestowed upon his employees. How can you not be TAKING part of their tips if you are forcing them into giving part of them to others. I believe this problem is why in several court decisions they stated that the evident purpose and proper interpretation of the statute is that it was enacted to prevent the taking of tips by an employer for the benefit of the employer.

  If no benefit to the employer can be shown from the forced tip pooling then it would not constitute "Taking". Further support to this decision was part two of this same labor law which stated that nothing contained in this section shall be construed to prevent such employees from entering into an agreement to divide such tips or gratuities among themselves. I am sure that someone must have argued that this supported a tip pooling option for employers. 

  What I wonder is what happened to the interpretation of among themselves? Was it interpreted to only mean that the tips where to be divided among employees? Was it over looked that this could mean that the decision to pool their tips was to be made among the employees themselves? It was however decided by the courts that it meant only that the tips would be divided among whoever themselves meant. This I believe was a mistake. Now who defines who themselves are.

  It seems to have been given over to the employers along with any protection that the labor laws were supposed to provide us with. The interpretation of "benefit" has become the vehicle to fight off any complaints of employees unsatisfied with the lack of protection afforded by the labor laws. I have been told and have experienced a truth that many dealers do not realize. When tips are not pooled dealers make more in tips simply due to the motivation that reaping of ones own harvest offers them.

  This is understood by most other tip earners exhibited by the fact that most tip earners who can, choose to keep their own tips. Casinos have a conflict of interest with the receiving of tips by employees, especially those employees who are claiming 100 percent of their tips as income for tax purposes. The more in tips that dealers make the more in social security matching funds the employer must pay out. If a tip earner makes 100 dollars in tips they will have around 7 dollars withheld out of their paycheck to go towards their social security. That amount must be matched by their employer.

  Do you think your employer would use tip pooling as a means to lower your tip income so they can reduce their expenditures? Do you think your employer would use tip pooling to reduce your tip income to keep down the salaries of your supervisors? If you made more in tips would your employer have to spend more on the salaries of hosts, floormen, pit managers, shift managers, and casino executives? I think it's time we all learned a little more about our rights as tax paying citizens of the United States of America.


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