|

Cutting the
deck on tips
Wynn Las Vegas rolls
the dice on gratuity game
By Liz Benston
Las Vegas Sun
September 28, 2006
It's about 10 p.m.,
well into the swing shift at Wynn Las Vegas. At a
blackjack table, a player is up a few hundred and tips the
dealer a $25 chip.
What happens next to
that chip is the subject of a hot legal debate that has
implications well beyond Wynn Las Vegas and the casino
industry - including, perhaps, valets and housekeepers.
Should the dealer
who receives that toke share it with the other dealers
working in the pit? Or with a dealer he barely knows with
a dull personality and a lousy morning shift?
For years, casinos -
and most dealers - have said yes. But what about the
floorman who supervises the dealer and does little more
for the gambler than shake his hand, watch him play and
make sure there's a full drink in his hand?
State and federal
laws are murky about how tips can be shared, triggering
lawsuits here and around the country by workers who don't
agree with the system. In Massachusetts, the law that
forbids managers from sharing tips generated by service
workers such as valet drivers and baggage handlers has
been strengthened to impose criminal penalties.
Federal law allows
employees to pool tips but defers to states on whether
management can require tip pooling. Nevada law doesn't
specifically address that issue, but the state courts have
allowed management to dictate tip pooling.
The question is, who
exactly can get their hands on that tip pool?
Tip-pooling at
Nevada casinos became the rule in the 1980s, to discourage
the widespread practice of tip hustling and bribing
supervisors for choice shifts as well as to attract
dealers to tip-poor shifts.
At Wynn Las Vegas,
all tips collected over a 24-hour period are split equally
among the dealers who worked that day.
When the hotel
recently ordered that card dealers' immediate supervisors,
called floormen or service team leaders, be included in
the tip pool, dealers complained that because floormen
were part of management, they didn't have a right to the
tips. Two dealers filed a class action lawsuit this month
on behalf of their co-workers. (Under the new deal,
boxmen, who supervise craps, are also tapping the tip
pool.)
One of the attorneys
representing the dealers, Reno labor lawyer Mark Thierman,
says the practice violates state law.
"We have a statute
that says you're not supposed to kick back tips to
management. I think it's pretty clear. Tips belong to the
employee, not the house."
But the practice has
precedent in Las Vegas.
In 1999 floormen at
the Resort at Summerlin were allowed by the labor
commissioner at the time to dip into the tip pool,
reasoning that they directly contributed to customer
service. After dealers complained that their tips were
being used to subsidize management salaries, the ensuing
sour publicity prompted the casino to exclude floormen
from the dealer tip pool.
A blackjack dealer
who didn't like sharing tips with floormen tried in 1995
to change state law but failed to win support with
legislators after the casino industry opposed the idea.
One sponsor of that
bill, Assemblywoman Chris Giunchigliani, who is a Clark
County Commission candidate, says state law needs to be
clarified.
"The whole premise
is that you make less in salary because you earn your
tips," said Giunchigliani, a special education teacher who
once worked as a waitress. "You should not be told who to
give your tips to, especially if those people didn't earn
them. I think the Legislature needs to protect people from
sharing tips with someone who's not normally in the line
of service."
The Nevada Supreme
Court in 1975 ruled that multiple people can be in that
line of customer service and deserve a cut of the tips.
"For example, a busboy as well as a waitress contributes
to the good service and well-being of a customer in a
restaurant," it said. "Similarly, in a casino, the
floormen, boxmen and cashiers all contribute to the
service rendered to the player."
A California court
similarly agreed recently that card-room shift managers
were not entitled to a share of the tip pool but that
floor managers - who work at the level between the dealers
and shift bosses - were entitled.
Los Angeles labor
attorney Dennis Moss, who is representing California
dealers in class action suits, says his clients are
different than, say, waitresses, busboys and bartenders
who serve customers as a group.
"When a winning
player tosses a chip to a dealer ... he is giving it to
the dealer" and not a group of people, he said, because it
is a sign of appreciation to the dealer for lucky cards.
While federal courts
have concluded that tips can be pooled among workers who
interact with customers, they've been ambiguous about what
amount of interaction qualifies for a tip.
Floorpeople watch
over several tables, greet customers and enroll them in
tracking programs that earn comps for gambling losses,
among other tasks. But one of their primary duties is
overseeing the game. Floorpeople are the first line of
defense for the casino to make sure that games are dealt
properly and that players aren't cheating or counting
cards - both activities that can hurt the bottom line.
Floorpeople are
supervised, in turn, by pit bosses.
Wynn executives
believe floor supervisors will serve gamblers better if
they get tips, which also will make it easier to recruit
new floorpeople from the ranks of dealers. (While dealers'
tip income will drop by at least 10 percent, Wynn says, he
will reward dealers up to $6,000 a year for good service.)
In a town where tips
account for more than 80 percent of many workers'
paychecks, there are plenty of examples of line workers
who make more than their salaried supervisors.
"We're talking about
this every day in my class," said Bill Werner, an
assistant professor in employment law at UNLV's William F.
Harrah College of Hotel Administration. "Everybody who is
making tips in Nevada should be paying attention to this."
Food and drink
servers customarily - and voluntarily - tip others, such
as busboys and bartenders, to show their appreciation for
quickly cleaned tables and properly made drinks.
Where might tip
pooling occur next? Some tip earners say it's just a
matter of time before tips are pooled among bellmen,
valets and housekeepers, but unions will make sure
managers won't share in them. (Dealers are not unionized.)
Werner says the
latest spat illustrates the continuing debate over who
earns customers' tips.
"Ultimately we have
to deal legally with the question of when you throw money
on the table, who are you giving it to? It's going to
become a bigger issue before it goes away."
Liz
Benston can be reached at 259-4077 or at
benston@lasvegassun.com. She also writes a weekly gaming
column for sister publication In Business Las Vegas.
(Back
to Index) |