Nightclub employees sue Wynn Resorts over tip pooling

Monday, November 01, 2010
Legal Briefs
Nightclub employees sue Wynn Resorts over tip pooling

Wynn Resorts Ltd. is being sued by two of its nightclub employees, who claim the resort's tip-pooling policy violates its collective bargaining agreement with the Culinary and Bartenders unions. The federal lawsuit, filed Oct. 25, seeks class action status, charges breach of written contract and seeks an injunction.

Lawyers for plaintiffs Kevin Carter and Daniel Gerstel claim Wynn Resorts has been improperly sharing tips earned by Culinary and Bartenders'union members with management, in violation of the bargaining agreement. Management personnel are not classified as employees entitled to gratuity sharing under the agreement, the lawsuit claims.

Carter and Gerstel have been employees at both Tryst at Wynn Las Vegas and at XS at Wynn's sister property, Encore. Carter is a shop steward for Bartenders Union Local 216; Gerstel is a shop steward for Culinary Union Local 226.

Wynn dealers had unsuccessfully sued the hotel-casino over a similar tip pooling policy in 2006, only to be directed to the Nevada Labor Commission. The commission ruled that Wynn's policy did not violate labor law.

John Mower, an attorney for Carter and Gerstel, the outcome of the Wynn dealers' lawsuit won't affect his clients' lawsuit.

"This is different in a couple ways. (This policy) is violating the law and also violates the contract," Mower said. "The practice we are talking about was instituted by Cy and Jessie Waits."

The twin brothers were hired by Steve Wynn to run Tryst and Encore. Cy Waits was soon "separated" from Wynn Resorts after being charged with drunken driving.