Wynn Resorts to Use Unpopular Tip Policy at New Casino

Now dealers are aware that the policy will continue with the opening of Encore, and many say they won't risk secure jobs to apply at the new luxury resort.

Wynn Resorts is continuing its preparation for opening the sister property to Wynn Las Vegas, Encore, due to start operations by the end of 2008. Part of the process involves staffing, and recent history for Steve Wynn may cause him problems landing dealers and casino staff whose skills are commensurate with the elite level to which his hotels aspire.

Although for many years Wynn had a reputation as a generous boss who paid well and was considerate of his employees, a hornets' nest of trouble arose when Wynn corporate policy was changed to include supervisors in the dealers' tip share.

The tip share is the accumulated tips earned by dealers during the course of the shift. The workers place tips into a lockbox at the table, which is combined with other tip boxes and divided amongst the dealers working that time slot.

In 2006, Wynn decided tip share should include pit bosses and dealer supervisors. Although these employees were traditionally paid by the company, Wynn stated that being involved in the tipping process might help get supervisors more in contact with customers, giving them a stake in increasing patron happiness.

Dealers immediately saw through this ruse, and identified the policy as a way to force employees to pay their bosses, saving money for the company in supervisory salaries and wages. This led to an ongoing court case, and the opening of a door for union organization.

The Transport Workers Union was successful in organizing both Wynn Las Vegas and Caesar's Palace, as other casinos had dealers fearful the new practice would spread.

Now dealers are aware that the policy will continue with the opening of Encore, and many say they won't risk secure jobs to apply at the new luxury resort. The thinking is that it is better to keep making 100 percent of one's earnings, rather than tithe to the boss in a kickback.

Although Encore reports being swamped by applications, the quality of candidates is yet to be seen. It will be interesting to see if Encore is forced to choose between its outrageous tip policy and high-quality, experienced dealers. Certainly it would not be in line with the Wynn reputation for beginners and fresh dealer-school graduates to run their tables.