Phony Job Creation and Wiggle Room Around Agreements

Harrah's New Orleans casino cuts back on full-time staff
By Jaquetta White, The Times-Picayune

Required by state law to employ 2,400 people every pay period, Harrah's New Orleans Casino has chipped away at its full-time work force and replaced those people with part-time and "on-call" workers during the economic downturn, a review of documents from State Police has found.

From summer 2008 to summer 2010, the number of full-time employees at the company fell from 84 percent to 78 percent, while the ranks of those workers who are at the casino for fewer hours grew.

Harrah's has been required by law to maintain a certain employment level since March 2001. The requirement was created under the administration of Gov. Mike Foster after the company's second bankruptcy filing and said that Harrah's New Orleans Casino's employment could not fall below 90 percent of the level on file, 2,667 workers, as of March 8, 2001.

The requirement was revised after Hurricane Katrina to specify the 2,400 figure, under the Kathleen Blanco administration. In addition, Harrah's is required to maintain a biweekly payroll of $1.75 million.

The employment figures are tied to a tax break the casino received to entice it to remain in business in New Orleans after its bankruptcy.