Wynn Las Vegas LLC, et al. v. Joseph Cesarz, et. al.

Pursuant to the DOL’s April 2011 final rule on tip pooling as described in our National Restaurant Association, et al. v. U.S. Department of Labor, et al. case, a group of Wynn Las Vegas LLC employees filed a class-action suit against their employer, alleging tip-pooling violations. In 2014, the employees’ case was dismissed in the U.S. District Court for the District of Nevada for failure to state a claim, and the court found Wynn’s tip pool to be legal. The employees appealed the decision in the U.S. Court of Appeals for the 9th Circuit, and the court reversed the lower court’s ruling (as it did in our tip pooling case) in February 2016. Wynn filed a Supreme Court certiorari petition challenging the 9th Circuit court’s decision on the basis that it misinterpreted the Supreme Court’s ruling in a separate case regarding how agencies administer laws, which could unfairly expand federal agency authority. We filed an amicus brief in support of Wynn Las Vegas’ certiorari petition, arguing that the DOL’s rule is ill-conceived and grants a “uniquely privileged status” for the dining room staff while depriving back-of-the-house staff a share of the tip pool.

Resolution

Cert Denied