A dealer who works at Boyd Gaming Corporation’s Kansas Star Casino recently scored a legal victory on tip pooling. The decision will likely benefit other gaming floor employees, too.
In a recent memorandum, Kansas US District Court Judge Daniel Crabtree mostly agreed with claims made by attorneys representing the plaintiff, Roger James, in the lawsuit. He alleged Boyd Gaming violated the Fair Labor Standards Act (FLSA) when it came to tips. The FLSA is a key federal employment law.
James received a base hourly wage. He also received tips through Boyd Gaming’s tip pooling that was shared among dealers at the casino.
Under the FLSA, an employer can pay tipped employees less than the minimum wage, Crabtree explained. But the employer has to provide a “tip credit” to make up the difference.
But James’ lawsuit said Boyd Gaming paid tipped employees below the minimum wage without complying with the FLSA tip credit provisions. A mandatory tip pool also failed to comply with the FLSA, the lawsuit adds.