WHY HAS A NEW LAWSUIT BEEN FILED AGAINST WYNN IN JANUARY OF 2013 AND WHAT DOES THAT LAWSUIT COVER?
A new lawsuit was filed against Wynn in January of 2013 to make a claim that the Wynn has violated federal law, the Fair Labor Standards Act (the "FLSA"). This lawsuit can recover tips ONLY for the period AFTER May 4, 2011. So this lawsuit will not assist dealers who did not work at Wynn after May 4, 2011.
This new lawsuit is being brought because of certain changes made to the regulations applying the FLSA. Those regulations, effective May 5, 2011, prohibit employers from forcing tipped employees to share tips with non-tipped employees or managers. Under those new regulations it is a violation of the FLSA for an employer to do that even when the employee is paid the full minimum wage required under the FLSA. These regulations create a change in the how the FLSA is applied. Previously the federal courts have held that the FLSA does not regulate tip pools when the employee receives the full FLSA minimum wage. If the new regulations are found by the Courts to control how the FLSA is enforced, it is believed Wynn's tip pool will be declared illegal and Wynn will be forced to repay the tips it has taken from the dealers since May 5, 2011 and perhaps pay double damages to the dealers as well.
This new lawsuit does not replace or limit the original, state court, lawsuit against Wynn but it may provide for an additional recovery of money for Wynn dealers for the time after May 4, 2011. If you want to join the new lawsuit, please download the papers to do so HERE. ONLY DEALERS WHO AGREE IN WRITING TO BE PART OF THIS LAWSUIT WILL BE ABLE TO BENEFIT FROM THIS LAWSUIT.
Whether this new lawsuit will succeed is unknown. There is a two year statute of limitations for claims under the FLSA which is measured from each week the employee worked and was not properly paid. As a result, the claims of the Wynn dealers under the FLSA will not start to diminish from the statute of limitations until at least May 4, 2013. It is possible a three year statute of limitations could be applied if Wynn's violations of the FLSA are found to be "willful" but it is unknown if that may happen. If you wish to join this lawsuit it is suggested you do so as soon as possible.