Right now, it's hard to tell how this Vegas "tip" controvery - headed to the Nevada Supreme Court - will eventually end up.
New law urged to stop redistribution of tips
By SEAN WHALEY, REVIEW-JOURNAL CAPITAL BUREAU, Mar. 28, 2007
CARSON CITY -- One of the original authors of a 1971 bill prohibiting Nevada employers from taking employee tips for their own benefit told a legislative panel on Tuesday that a new measure is needed to overcome court decisions that have weakened the law.
Former state Sen. Don Mello of Sparks told the Assembly Judiciary Commitee that the middle class is shrinking because of the increased cost of living. Allowing employers to pool tips and redistribute them at their discretion to employees who did not earn them should be prohibited, he said.
The big hotel-casinos bring tourists to Nevada, Mello said. But it is the hard-working men and women who serve those tourists well who ensure they will return, he said.
The committee took testimony on Assembly Bill 357, sponsored by Assemblyman Bob Beers, R-Henderson, a measure aimed at a recent move by the Wynn Las Vegas hotel-casino to split the tokes earned by its dealers with casino supervisors.
"A certain Nevada corporation believes that, regardless of the source of the tip, the monies belong to the corporation, and therefore those tips have been confiscated in spite of Nevada law," Beers said in prepared testimony. "The law, as written, is quite clear. Taking is taking."
Kim Sinatra, general counsel for Wynn Resorts, disagreed that the 1971 law is not being followed. Employers cannot take tips, and that is not happening at the casino, she said.
"The spirit of the law continues to protect the employees of the state of Nevada," Sinatra said.
But if employers don't have the ability to set policy in tip pooling arrangements, those who need the tip income the most could suffer as a result because they don't have the leverage to ensure their participation, she said.
No immediate action was taken on the bill.
The hearing got testy after Judiciary Chairman Bernie Anderson, D-Sparks, repeatedly asked those testifying not to mention the Wynn Las Vegas property by name. The bill is addressing a statewide policy meant to apply to all such businesses, he said.
Witnesses testifying for the bill were gaveled to silence when they mentioned the hotel-casino by name.
When one witness mentioned Steve Wynn by name, Anderson said, "Thank you, you're finished."
Anderson then abruptly called for a break in the hearing while Legislative police made their way into the hearing room, having been called there by another officer who had noticed the tension.
Before the break, dealers working for Wynn Las Vegas and other casinos asked the committee to pass the bill, which clarifies that an employer cannot exercise control over tips given to employees.
"We just clearly want our money given to us," said Marcus Hansel, a Wynn Las Vegas dealer. "When we do 100 percent of the job, we don't want 80 percent of the pay."
Wynn Las Vegas dealer Meghan Smith said the only recourse the employees have is to clarify state law because of previous court interpretations.
"If this bill is not passed, it will harm the Las Vegas economy," she said. "It will open the doors for all business owners to skim employees' tips."
Mirage Hotel and Casino dealer Albert Maurice also supported the bill.
"We have seen enough corporate greed and abuse in the past few years in this country, and this is another example," Maurice said.
Andrew Pascal, president and chief operating officer of Wynn Las Vegas, disputed the testimony by one dealer on the amount of lost income. He said dealer wages went down 5 percent to 10 percent under the new tip pooling arrangement.
Supervisors, whose duties were changed to be more customer service oriented and who were renamed team leaders, saw their wages go up with the tips to slightly above the dealer salaries, Pascal said.
There wasn't just a title change so the supervisors could be added to the tip pool, he said.
The Wynn tip policy was upheld in December by Clark County District Judge Douglas Herndon, who cited previous court rulings on the issue. Herndon said the company was not taking away tips, only widening the pool of workers who share in the gratuities.
Past court rulings found that the original 1971 prohibition on employers taking tips did not apply if the employer did not directly benefit from the pooling of tips.
The Herndon decision is on appeal to the Nevada Supreme Court.
The Nevada labor commissioner also upheld the new Wynn Las Vegas tip pooling policy.
In September, Wynn began the tip pooling program, in which table game supervisors shared in the tips earned by dealers. Wynn executives said the move was done to correct what had been a widening disparity between the wages earned by dealers and casino floor supervisors.
Also speaking in opposition to the bill was Sam McMullen, representing the Las Vegas Chamber of Commerce and the Nevada Restaurant Association. He said the bill would limit the flexibility of employers to manage their own businesses.
"There are hundreds of tip pooling arrangements," McMullen said.
The bill could cause turmoil in many businesses other than hotel-casinos, he said.
But Assemblyman William Horne, D-Las Vegas, questioned whether the line has been moved too far as to who in the service industry should be able to share in tips.
That is the policy decision before the panel, Horne said.
http://www.reviewjournal.com/lvrj_home/2007/Mar-28-Wed-2007/news/13432760.html
New law urged to stop redistribution of tips
By SEAN WHALEY, REVIEW-JOURNAL CAPITAL BUREAU, Mar. 28, 2007
CARSON CITY -- One of the original authors of a 1971 bill prohibiting Nevada employers from taking employee tips for their own benefit told a legislative panel on Tuesday that a new measure is needed to overcome court decisions that have weakened the law.
Former state Sen. Don Mello of Sparks told the Assembly Judiciary Commitee that the middle class is shrinking because of the increased cost of living. Allowing employers to pool tips and redistribute them at their discretion to employees who did not earn them should be prohibited, he said.
The big hotel-casinos bring tourists to Nevada, Mello said. But it is the hard-working men and women who serve those tourists well who ensure they will return, he said.
The committee took testimony on Assembly Bill 357, sponsored by Assemblyman Bob Beers, R-Henderson, a measure aimed at a recent move by the Wynn Las Vegas hotel-casino to split the tokes earned by its dealers with casino supervisors.
"A certain Nevada corporation believes that, regardless of the source of the tip, the monies belong to the corporation, and therefore those tips have been confiscated in spite of Nevada law," Beers said in prepared testimony. "The law, as written, is quite clear. Taking is taking."
Kim Sinatra, general counsel for Wynn Resorts, disagreed that the 1971 law is not being followed. Employers cannot take tips, and that is not happening at the casino, she said.
"The spirit of the law continues to protect the employees of the state of Nevada," Sinatra said.
But if employers don't have the ability to set policy in tip pooling arrangements, those who need the tip income the most could suffer as a result because they don't have the leverage to ensure their participation, she said.
No immediate action was taken on the bill.
The hearing got testy after Judiciary Chairman Bernie Anderson, D-Sparks, repeatedly asked those testifying not to mention the Wynn Las Vegas property by name. The bill is addressing a statewide policy meant to apply to all such businesses, he said.
Witnesses testifying for the bill were gaveled to silence when they mentioned the hotel-casino by name.
When one witness mentioned Steve Wynn by name, Anderson said, "Thank you, you're finished."
Anderson then abruptly called for a break in the hearing while Legislative police made their way into the hearing room, having been called there by another officer who had noticed the tension.
Before the break, dealers working for Wynn Las Vegas and other casinos asked the committee to pass the bill, which clarifies that an employer cannot exercise control over tips given to employees.
"We just clearly want our money given to us," said Marcus Hansel, a Wynn Las Vegas dealer. "When we do 100 percent of the job, we don't want 80 percent of the pay."
Wynn Las Vegas dealer Meghan Smith said the only recourse the employees have is to clarify state law because of previous court interpretations.
"If this bill is not passed, it will harm the Las Vegas economy," she said. "It will open the doors for all business owners to skim employees' tips."
Mirage Hotel and Casino dealer Albert Maurice also supported the bill.
"We have seen enough corporate greed and abuse in the past few years in this country, and this is another example," Maurice said.
Andrew Pascal, president and chief operating officer of Wynn Las Vegas, disputed the testimony by one dealer on the amount of lost income. He said dealer wages went down 5 percent to 10 percent under the new tip pooling arrangement.
Supervisors, whose duties were changed to be more customer service oriented and who were renamed team leaders, saw their wages go up with the tips to slightly above the dealer salaries, Pascal said.
There wasn't just a title change so the supervisors could be added to the tip pool, he said.
The Wynn tip policy was upheld in December by Clark County District Judge Douglas Herndon, who cited previous court rulings on the issue. Herndon said the company was not taking away tips, only widening the pool of workers who share in the gratuities.
Past court rulings found that the original 1971 prohibition on employers taking tips did not apply if the employer did not directly benefit from the pooling of tips.
The Herndon decision is on appeal to the Nevada Supreme Court.
The Nevada labor commissioner also upheld the new Wynn Las Vegas tip pooling policy.
In September, Wynn began the tip pooling program, in which table game supervisors shared in the tips earned by dealers. Wynn executives said the move was done to correct what had been a widening disparity between the wages earned by dealers and casino floor supervisors.
Also speaking in opposition to the bill was Sam McMullen, representing the Las Vegas Chamber of Commerce and the Nevada Restaurant Association. He said the bill would limit the flexibility of employers to manage their own businesses.
"There are hundreds of tip pooling arrangements," McMullen said.
The bill could cause turmoil in many businesses other than hotel-casinos, he said.
But Assemblyman William Horne, D-Las Vegas, questioned whether the line has been moved too far as to who in the service industry should be able to share in tips.
That is the policy decision before the panel, Horne said.
http://www.reviewjournal.com/lvrj_home/2007/Mar-28-Wed-2007/news/13432760.html
