Tip Pooling in Vegas Casino Sparks Lawsuit
Tip pooling is the cause of a wage lawsuit between Wynn Las Vegas and its dealers. Disputed is the casino’s policy of sharing dealers tips with their floor supervisors, a pay practice instituted in 2006.
According to dealers, the payouts from the tip pool were a way for the casino to pay managers more without having to pay them out-of-pocket, a less-common violation of federal tip pooling law but nevertheless an illegal pay practice if true.
About 600 dealers have been affected by the tip pooling practice since it went into place. Real wages for dealers, according to one dealer interviewed, has dropped an estimated 25 percent.
Previous to 2006, tip pooling was in place and followed industry practice of redistributing dealers’ tips among dealers only.
Testimony was presented this month to Nevada’s labor commissioner where the casino’s dealers have taken their case, asking that this tip pooling payout policy be ruled illegal and that $35 million in back pay and penalties be awarded to the nearly 500 dealers affected. The first formal complaints and wage claims go back to 2006 when the tip-pooling policy was implemented.
Labor laws governing tip pooling are pretty clear on at least one point: participants in a tip pool must be regularly tipped employees, and employment law expressly forbids managers from taking any tip pool.
Regardless of the labor commissioner’s decision, this tip pooling lawsuit is expected to go to the state supreme court and its outcome affect all Nevada tip earners. The court’s decision could mean restitution for tip pool abuses if the tipped employees win the lawsuit. Or, it could mean Nevada employees who depend on tips for their subsistence–busboys, waiters and waitresses, bartenders, etc.–may be subject to management’s taking their tips and paying whomever they feel like with these tip moneys.
If you believe you may have tips unlawfully taken from you by your employer through tip pooling or by other means, I encourage you to complete our online TN wage lawsuit inquiry form or to call our Nashville, TN employment law offices directly at 800.705.2121.
Author Bio
Jim Higgins, founder of the Higgins Firm, is a seasoned personal injury attorney with deep roots in Nashville, Tennessee. A 4th generation Nashvillian, Jim carries on the legal legacy of his father, a judge for over 30 years. After graduating from the University of Memphis School of Law, Jim’s career began on the other side of the courtroom, defending insurance companies and learning their tactics for minimizing settlements. However, he soon realized his true calling was fighting for the rights of the injured, and for the past several years, he has exclusively represented plaintiffs in personal injury cases.
Since then, his dedication and skill have earned him membership in the prestigious Million Dollar Advocates Forum, an organization limited to attorneys who have secured million and multi-million dollar verdicts and settlements for their clients. Licensed to practice in Tennessee, Kentucky, and Georgia, Jim focuses on personal injury, product liability, medical malpractice, and workers’ compensation cases. His exceptional work has been recognized by his peers, earning him a spot on the Super Lawyers list from 2021 to 2024, a distinction awarded to only a select group of accomplished attorneys in each state.
