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Wynn dealers'
complaints rejected
Commissioner says tip-sharing program is legal
By
HOWARD STUTZ
GAMING WIRE
Sep. 14, 2006
Copyright © Las Vegas Review-Journal
Nevada's labor commissioner Wednesday rejected complaints
filed by more than 100 dealers over Wynn Las Vegas' new
tip pooling policy, saying the program where tips are now
shared between dealers and supervisors is legal.
"Based on what we've seen, Wynn Resorts is not violating
state law regarding tip pooling," Labor Commissioner
Michael Tanchek said.
Tanchek said the state's Department of Business and
Industry will continue to look at Wynn Las Vegas' new
policy and investigate any new complaints. He also
cautioned other companies about instituting a similar
tip-sharing concept.
"My biggest concern about this policy is that other
properties will look at what Wynn did and try to put their
own plan into place," Tanchek said. "Wynn seemed to have
good advice and got it right. Others might try it and get
it wrong, and that would be a concern."
Wynn Las Vegas officials announced the new plan in
meetings with dealers and supervisors Aug. 21. The plan
also included a restructuring of the table games division.
On Sept. 1, table-game supervisors began sharing in the
tips earned by dealers. Wynn executives said the move is
being done to correct the widening disparity between the
wages earned by dealers and casino floor supervisors.
Tanchek said the casino complied with a state law
requiring that all employees affected by the policy
receive seven-day advance notice of a change in pay.
Wynn Las Vegas President Andrew Pascal said he hopes the
ruling by the labor commissioner puts to rest concerns
that the program violated any state laws.
"We believe in the program, and we believe it was the
right thing to do for our property," Pascal said. "We
wouldn't have implemented the program if we didn't think
it was lawful. The most important thing we can do right
now is press ahead, continue to provide information and
answer questions and hope that people make a judgment
based on real information."
While the dealers' take-home income has been affected,
with some dealers earning an estimated 15 percent to 30
percent less than before the tip-pooling policy was
implemented, actual salaries were not affected, Tanchek
said.
"It's a legal distinction between wages and income,"
Tanchek said. "The dealers are seeing a reduction in
income. But because it's a tip, it's not a reduction in
wages."
Pascal said dealers at the casino were some of the highest
paid in the city, earning around $100,000 annually; almost
$13,000 in straight wages and about $88,000 in tips. He
said the tip earnings would fall to about $77,000 a year.
Tanchek said the state's deputy labor commissioner and the
office's chief investigator went to the resort to talk
with Wynn executives and observe how the tip pooling was
handled.
He said as long as the tips are being shared by Wynn
employees who participate in customer service, the pooling
is legal under Nevada Revised Statutes 608.160, the law
that restricts an employer's access to tips and gratuities
awarded to workers.
"If there is a complaint that employees not involved in
customer service are participating in the tip pooling,
that would become a concern," Tanchek said.
None of the dealers filed claims for wages owed, but most
of the complaints centered around whether the policy
violated the tip-pooling laws.
Several Wynn dealers, who asked not to be named, said they
weren't surprised the quick outcome went in favor of the
resort.
"Mr. Tanchek is clearly not looking out for the best
interest of the workers of Nevada. The state of Nevada is
stirring up a serious problem now," said one Wynn dealer
in a post on CasinoDealers.net, an Internet forum.
One dealer who refused to be identified for fear of losing
his job told The Associated Press the disgruntled dealers
plan to take their complaint to federal authorities next
before seeking legal help. But he said he plans to keep
dealing.
"Until that time we have to consider our families and our
responsibilities at home," he said.
Pascal said that since the restructuring and tip pooling
were implemented, about 75 Wynn dealers applied for
supervisor positions while some supervisors asked to go
back to dealing. He said Wynn Resorts has committed
"millions" to the program to boost the salaries of
supervisors that will also be augmented by the tip
pooling. In addition, Pascal said Wynn Las Vegas had
implemented a bonus program for dealers.
"We still have a group of dealers who are disappointed,
but we hope the commissioner's ruling clarifies what we're
doing is lawful," Pascal said.
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