Editor's Letter: Tipping the Balance
by Andy Holtmann
May 9, 2008
When I first saw the news that a Superior Court
had ruled against Starbucks Corp., ordering the coffee giant to pay more than
$100 million in back tips to baristas that had been given to shift supervisors
at the chain’s California locations, I immediately thought of table game
dealers and what kind of impact the decision could have for them. Apparently,
I’m not the only one who has made that connection. Dealers with at least one
Las Vegas gaming property are already hailing the decision.
If you’ve followed the controversy between management and dealers at the
Wynn Las Vegas Resort & Casino, then you already know that Steve Wynn and
the management of the property implemented a tip-sharing policy with dealers
and table game supervisors such as pit managers. The rules, setting aside at
least 15
percent of dealers’ tips for the supervisors, created a new precedent with
regard to how dealers’ tokes are managed — one the dealers there claim is
grossly unfair.
For 18 months, dealers at Wynn Las Vegas have been fighting the new rules:
filing a lawsuit to overturn Wynn’s policy; petitioning for a state ballot
initiative against the measure and to protect tips for traditional tip-earning
casino workers; and voting to have labor representation from the Transport
Workers Union. The dealers have argued that the policy violates Nevada laws and cite
over 30 years’ worth of case-
studies and legal precedents to back up their case. Wynn, though telling
dealers the policy was a mistake prior to the union vote, has defended the
policy of late. He and Wynn management argue that supervisors are entitled to a
share of the tips as well, as many of their duties involve communication and
dealings with customers as well (greetings, making sure drink orders are
fulfilled, etc.).
But for dealers, who depend on tips for the majority of their salaries, the
decision to tip-share has a huge impact, resulting in thousands of dollars in
lost earnings per year. An average casino dealer in Las Vegas might make between $7 and $10 per
hour, but with tips, they can make anywhere from $65,000 to $100,000 a year.
Having to share 15 percent of that amount can be significant. And, make no
mistake, other casino companies and properties are interested to see how this
pans out as well, meaning that table game dealers across the United States
could feel the pinch too. After all, Wynn does tend to set examples that the
industry seems to mimic.
In a recent article in the Las Vegas Sun,
Wynn dealers said they were elated with the California Starbucks decision,
adding that it gave hope and perhaps some additional precedent fuel for their
own tip battles. Yet, in Nevada’s
more company-
friendly courts, dealers could still face long odds.
As it stands now, Nevada
Revised Statutes denote that “it is unlawful for any
person to take all or part of any tips or gratuities bestowed upon his
employees.”
For more than a year, the Sun article notes, attorneys for both sides have
contested the definitions of “person” and “take.” Wynn supervisors, like
Starbucks supervisors, don’t handle the same tasks as the people they are
managing. But Wynn dealers no longer count or account for their own tips,
contrary to common casino industry
practices.
So what’s my take on this debate? I have largely remained on the sidelines,
though I haven’t really seen why tip-sharing is seen as necessary on the casino
floor. I understand tip-sharing for restaurants and other hospitality venues
where a true team of employees, all earning similar base wages, are caring for
the customer. I know this is a stance some operators won’t agree with, but
think about the end consequences.
Unhappy dealers lead to unhappy players, and unhappy players lead to less
business. You can’t force or mandate employee satisfaction. It just doesn’t
work that way. My suggestion would be to leave dealer tips alone. Give
supervisors other incentives like better pay and bonuses (and incentives to
work toward becoming supervisors — many dealers today wouldn’t trade their gig
for a management role). I’d think everyone would win under that scenario,
including the customers and ultimately your bottom line.
Andy Holtmann
holtmanna@bnpmedia.com
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