Lawsuit charges the company with violations of the federal Fair Labor Standards Act
Dealers for Wynn Resorts have fired another shot in their long-running and up to now unsuccessful battle to overturn mandatory tip-sharing at the company’s flagship Wynn Las Vegas casino, filing a lawsuit against the policy in federal court.
The suit, filed in U.S. District Court in Las Vegas by dealers Quy Ngoc Tang, Leopold Gemma and Daniel Baldonado, charges the company with violations of the federal Fair Labor Standards Act. The suit, which seeks to represent all affected Wynn Las Vegas dealers, claims that by requiring the dealers to share tips with supervisors, Wynn Las Vegas effectively is paying the dealers nothing in violation of federal minimum wage and overtime laws.
The suit is independent of a pending state court case, said an attorney for the dealers.
The state dispute arose with a lawsuit challenging the policy, which was instituted at Wynn Las Vegas three years ago and gives immediate supervisors a share of gamblers' tips to dealers, a departure from the historical practice of dealers alone sharing their tips.
Wynn says the policy is equitable because it reduces the pay gap between dealers and their supervisors, who in some cases were making less money than the dealers. Wynn also contends that it has the authority to do so.
The Nevada Supreme Court last year sided with a Clark County District Court that the issue should be brought before the state Labor commissioner, who continues to hold hearings in the dispute.
Wynn dealers challenge tip-sharing in federal court
July 15, 2009