Hotel and casino company Wynn Resorts will pay more than five million dollars in order to quell the two collective action lawsuits filed against them.
The collective class action lawsuits, according to online reports, stemmed from Wynn Resorts’ tip-sharing policy that involved its table games dealer and supervisor staff members.
The first collective class action was filed in 2013 by Joseph Cesarz and Quy Ngoc Tang and became what is known as the Cesarz case.
The Cesarz case argued that Wynn Resorts’ tip-sharing policy was in violation of the Fair Labor Standards Act or FLSA.
Furthermore, the Cesarz case argued that the company has “failed to pay any wages whatsoever to the plaintiffs” by “taking [of] a portion of the plaintiffs’ tips” among other things that violate the provisions of the FLSA aimed to protect and promote workers’ welfare.
Meanwhile, both Cesarz and Tang filed another separate opt-in collective action, called the Tang case.
As of writing, the Cesarz case still has a pending appeal after it has gotten dismissed twice before, while the later Tang case has been put on hold amidst negotiations of the settlement.
It is estimated that the Wynn Resorts Tip Sharing Collection Settlement will benefit about a thousand former and current dealers employed by Wynn Resorts.
It is reported that Wynn Resorts agreed to pay up $5.6 million that will go to the legal and attorneys’ fees and to the affected class members as well.
Who Will Benefit In The Wynn Resorts Tip Sharing Collection Actions Settlement?
According to the settlement details, after the attorneys’ fees and other legal expenses are deducted from the initial settlement amount of $5.6 million, the remaining amount will then be divided between the beneficiaries of the Cesarz and Tang cases.
Seventy percent of the remaining amount will go to the Tang case, while the rest goes to the Cesarz case.
The relevant time periods for the cases are as follow:
- March 23, 2018 – November 11, 2018, for the Tang case;
- For the Cesarz case, there are two. First are the dates between January 31, 2017 – March 22, 2018 (for those who did not previously consent to join the complaint), and three years before the date, the written consent for those who decided to give their consent and join the action. The second category falls under the significant dates between May 1, 2011, and March 22, 2018.
Some affected Wynn Resorts staff members will be able to receive two separate compensation checks if they have worked during the specified time covered by both the Tang and Cesarz cases. Nevertheless, the amount a person will receive will be computed pro-rata.
Meanwhile, dealers that are a part of the settlement have the opportunity to take the check or decline the offer and pursue a separate case against Wynn Resorts.
A spokesperson from Wynn Resorts has shared that the company is glad that all of the agents involved were able to work out an agreement that is amicable for both participating parties and sides.
Editor’s Note on Wynn Resorts Tip-Sharing Settlement For $5.6 Million:
This article’s goal is to give you the latest information regarding the settlement between Wynn Resorts and their employees amidst allegations of tip-sharing violations raised by aggrieved workers and staff members.
Case Name (s) & No. (s): Joseph Cesarz, et al. v. Wynn Las Vegas LLC et al., Case No. 2:13-cv-00109; and, Quy Ngoc Tang, et al. v. Wynn Las Vegas LLC, Case No. 2:18-cv-00891
Jurisdiction: United States District Court for the District of Nevada
Allegation(s): Wynn Resorts engages in illegal labor practices by imposing an illegal tip-sharing scheme that is in violation of the provisions of the Fair Labor Standards Act or FLSA.
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