Summary:
- Wynn Resorts has been sued by a slots attendant over its tip-sharing policy
- The new suit is similar to two cases filed by dealers which Wynn settled for $5.6 million
- The company’s tip-sharing policy was originally instituted by ex-Chairman Steve Wynn
Wynn Resorts Ltd is facing fresh legal action over an alleged violation of labor laws relating to its tip-sharing policy, similar to a previous case against the company that ended in a $5.6 million settlement.
The new lawsuit centers on tips given to slot machine attendants which were allegedly shared with their managers.
Slots Attendants Forced to Share Tips with Supervisors
Sheila Little from Clark County sued Wynn Resorts over its implementation of a “mandatory tip pooling and tip confiscation policy” whereby slots employees, including her, were forced to share a portion of their tips with their supervisors. Such practice violates the Fair Labor Standards Act, according to the suit.
The lawyers representing the plaintiff, Kaine Messer and Christian Gabroy of the Gabroy Messer Law Firm in Henderson, Clark County, are keen on having the case recognized as a class action lawsuit to include other slot employees at Wynn who have had similar experiences.
The suit is seeking damages in excess of $15,000, actual damages equivalent to the full amount of tips which are part of casino etiquette were unlawfully withheld from slots attendants, as well as punitive damages. Wynn Resorts has yet to comment on the latest lawsuit to hit the company.
Wynn Resorts Settled Similar Case in 2021
This isn’t the first time that Wynn Resorts has been sued for violating labor laws because of its tip-sharing policy. The company previously dealt with two lawsuits filed by dealers in 2013 and 2018 concerning the tip-sharing policy originally introduced in 2006 by the company’s founder and former Chairman and CEO Steve Wynn.
The policy’s goal was to prevent dealers from out-earning their supervisors so that employees would not be discouraged to seek promotion. Wynn merged the roles of floor supervisors and pit bosses into a single position called “casino service team leads” with whom dealers were required to share around 12% of their pooled tips.
No other casino on the Strip had created the role of casino service team lead, only Wynn Resorts, and dealers had argued for years that the move was illegal.
To address the issue, the tax-sharing policy was terminated courtesy of Matt Maddox who took over as the company’s CEO in 2018. In 2021, Wynn settled the two lawsuits, agreeing to pay $5.6 million to around 1,000 dealers.
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