Wynn Resorts Set to Pay Game Dealers in $5.6m Settlement
Wynn Resorts must pay $5.6 million to 1,000 former and current table game dealers as part of a tipping case settlement.
In the workforce, employment positions that accept tips can be tricky. There are rules and regulations to go by, both by the employer and the government. For the most part, a tip job can be rewarding, especially when you have nice and regular customers who tip well. However, if your employer has strict or unfair rules, then the tips may not play to your favor. Casino company Wynn Resorts Ltd. Is learning the hard way that unfair rules have a penalty in the long run. The company must now pay $5.6 million in a settlement involving tips and table game dealers.
Huge Settlement Deal
An estimated 1,000 table game dealers will be paid via the settlement by Wynn. Some dealers work with the company now and others are former employees. The properties included in the settlement are Wynn Las Vegas and Encore.
Last Friday, U.S. District Judge Andrew Gordon signed the order, ruling that the court found the proposed settlement to be fair and reasonable as part of a dispute involving the Fair Labor Standards Act for those involved in the case.
Table game dealers and management of Wynn properties are part of an ongoing dispute involving a policy that was started by former CEO Steve Wynn back in 2006. Back then, a tip pool sharing policy was launched. At the same time, Wynn decided to create team lead positions and these individuals replaced floor supervisors and pit bosses.
The Wynn Las Vegas has just opened in 2005 and was busy with huge crowds. The gamblers visiting the property were big tippers and Steve Wynn was concerned that dealers were making more than the supervisors. This would disincentive people who were in positions of a higher ranking.
The dealers did not think this was fair, particularly due to the fact that they are the ones interacting one-on-one with the customers and dealing the cards. Dealers claimed they lost a large amount of money from the split tips. One dealer of Wynn Resorts said she felt like she had lost around $100,000 since the policy was started more than a decade ago.
A New Policy Instated
When Matt Maddox came in as CEO of Wynn Resorts in 2018, replacing Steve Wynn, he decided to do something about the tipping issue. Within two months of taking on the position, Maddox had increased the pay rate for dealers by $2 an hour. This was an annual increase of around $4,000.
The raise was the first one that dealers had been given in a ten-year time frame. The new policy also required dealers to share 12% of the tip pool with the casino service team leads. This would be the supervisors of the dealers on the game floor.
Wynn Resorts argued in the court case that the team leads are not supervisors and they are eligible to be in the tip pool. These individuals are not considered in a higher position as they do not have influence on the pay scale or create work schedules for dealers.
A Little History
Dealers of Wynn Resorts filed the first federal lawsuit back in 2013. A second lawsuit was filed five years later. The Wynn Las Vegas is the only operator located on the Strip that has team leads and that takes part in shared tips.
As the settlement was reached, it covered the cost of attorney fees, litigation costs, administrator fees, and $10,000 paid to each plaintiffs that were listed in the original cases against Wynn. For the estimated 1,000 former and current dealers, these individuals will only receive just over $4,000 each.