A recent case out of Las Vegas places the tip sharing policies of some
high profile casinos under intense scrutiny. At issue – a tip sharing
policy that requires Las Vegas Strip casino workers to share their tips
with their supervisors. Last week the Nevada District Court ruled that
the policy in place at Wynn Resorts including Wynn Las Vegas and Encore,
violates state law and that employees can’t be forced to share tips
with supervisors or employees in other types of jobs.
Tip sharing policies can be complex – certain guidelines must exist
to ensure workers receive all the pay they are entitled to. If you are
a tipped employee and are unsure if your company’s tip sharing policy
complies with federal or state law, it is important to consult with a
Georgia overtime attorney.
Smith v. Wynn involved a dispute between table games dealer and their employer over
the distribution of tips left by patrons. Wynn Resort employed several
different types of tipped workers including table games dealers, slot
department employees, poker dealers, valet parking attendants and cocktail
waitresses. The table games department also had various types of employees
– dealers, box persons and Casino Service Team Leads (CSTLs). Under
the tip pooling policy, dealers were required to share their tips with
the box men and CSTLs. While tip sharing is common among workers of the
same job classification, sharing with supervisors may be problematic.
A Nevada District Court judge determined that the policy in question violated
In general, tip-sharing policies must follow certain guidelines including:
• Tips belong to employees, not the employer. Employees cannot be
required to turn over part of their tips to the company except as part
of a valid tip pooling arrangement.
• The employer cannot be part of a valid tip pooling arrangement
• Only employees who receive tips can be part of a pooling arrangement
• Employers must notify tipped employees of any required tip pool
contribution and cannot retain employees’ tips for any other purpose.
Individual states may have additional tip pooling rules, including whether
tips may be pooled between different categories of workers.
For more information or if you believe you are a tipped employee and have
been denied adequate compensation as the result of a tip sharing agreement,
contact the dedicated
Georgia wage and hour lawyersThe Buckley Law Firm, LLC.