Labor commissioner’s decision favors Wynn, chills dealers

Steve Wynn, a man accustomed to good news, on Monday received what those in his inner circle surely agree was excellent news.

Nevada Labor Commissioner Michael Tanchek agreed the casino boss was within his rights when he changed the tip policy at Wynn Las Vegas on Sept. 1, 2006, to require toke sharing between dealers and their floor supervisors.

The commissioner's call should send a chill up the spine of every tip earner in the state.

The decision ran counter to casino tradition and appeared to violate at least the spirit of state laws designed to prevent management from manipulating dealers' tokes. Tanchek's order was overdue. Wynn Las Vegas dealers recently expressed cautious optimism that their underdog push to retain their tips would be honored.

Instead, they were sent reeling by Monday's announcement that the nearly 4-year-old policy doesn't violate state law. To them the call confirmed their suspicions the game is rigged in favor of one of the Strip's legendary casino industry high rollers.

"It gives him a green light to legally skim," said John Neill, a dealer since Wynn Las Vegas opened April 28, 2005. "We don't collect our tokes," like they do in other casinos. "We don't really know how much money we're making."

They all agree they're making substantially less -- about 20 percent by their accounting -- since the tip-sharing decision was made. Dealers earn minimum wage plus their tips. Floor supervisors receive $225 per shift.

The lost tip money, estimated at $35 million in pay and penalties according to lawyers for the dealers, was used to augment the wages of the floor supervisors, who in recent years have been referred to by the puffed-up title "Casino Service Team Leads." By any name, and pending appeal, the presumption Nevada law doesn't allow casino management supervisors to share in dealers' tips no longer applies.

Tanchek's order wasn't all that surprising. It reconfirmed District Court and state Supreme Court rulings in favor of the resort. As long as the dealers were notified in writing seven days prior to the change in policy, the labor commissioner said, management was within its right to redistribute their tips.

It wasn't what former state legislator Don Mello intended when he helped craft the law, the dealers argue. Not even Wynn seemed certain he'd done the right thing when he apologized personally to his dealers on the eve of their vote to organize and join a union.

The decision leaves the dealers who have fought the house feeling like carnival rubes.

"We're very disappointed in the corruption of the state," Day One dealer Erik Qualle said. "No tip earner is free from this decision. The labor commissioner has shown his true colors. Money can buy anything, including conscience. He's ruined the lives of every tip earner in the state."

Beyond whatever cynicism the labor commissioner's ruling engenders -- Nevada isn't exactly a workingman's paradise when it comes to job protection -- I'll bet the house we haven't heard the last of this.

It's extremely naïve to believe this ruling won't have a substantial effect on the casino industry. It gives other operators, some of which are in far less solid financial shape than Wynn Resorts, a chance to use dealers' tips to compensate employees traditionally left out of that toke pool.

"People have called us greedy, but this is bigger than us," Neill said. "This is about the tip earners of the state of Nevada. This opens the door for other corporations to follow.

"If you think Steve Wynn is the only one who is going to do this, you're mistaken."

While Wynn Resorts management celebrates its victory over the Lilliputian dealers, you can almost feel the chill running up the Strip.

John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295. He also blogs at lvrj.com/blogs/smith.