Assemblyman Bob Beers (left) reviews paperwork with Al Maurice. Read this testimonial and please help fund Bob Beers' reelection. Visit Bob Beers 4 Assembly. Read Bob's latest letter to the editor here.

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Current Nevada State Law NRS 608.160:

1. It is unlawful for any person to:
1. Take all or part of any tips or gratuities bestowed upon his employees.
2. Apply as a credit toward the payment of the statutory minimum hourly wage established by any law of this State any tips or gratuities bestowed upon his employees.
2. Nothing contained in this section shall be construed to prevent such employees from entering into an agreement to divide such tips or gratuities among themselves.

September 1, 2006, Wynn Las Vegas began violating NRS 608.160 by taking the tips and gratuities bestowed upon employees. Dealers approached the labor commissioner, Michael Tanchek, and filed complaints in early September (see lawsuit for more information). Tanchek opted not to make a ruling on our issue. A few months later, Tanchek worked with Wynn's attorneys and drafted an interpretation of the new minimum wage law. Tip-pooling is unrelated to minimum wage in the state of Nevada, however, the following clause dealing with tip-pooling was slipped into to the minimum wage law interpretation:

Tip Pooling

1. Employers are not prohibited from requiring employees to participate in a tip pooling arrangement as a condition of employment as long as the employer does not retain any part of the tips for his own use or reap any direct benefit from the pooling.
2. Only employees who provide service directly to customers may be included in a tip pooling arrangement.
3. Employees whose duties may include some management responsibilities may participate in a tip pooling arrangement only if a substantial portion of their responsibilities normally include providing service directly to the customers.

On March 12, 2007, the labor commissioner’s office held a public conference to debate the above interpretations of the new minimum wage law. Dealers were outraged and several showed up to speak at the labor commissioner’s hearing.  Moments before the proceeding began Michael Tanchek announced that the clause was no longer being considered in the minimum wage interpretations.  His reason: Assemblyman Bob Beers and other legislators were drafting a bill, AB 357, dealing with tip-pooling.  He would wait for the outcome of the bill.

March 27, 2007, the Judiciary Committee held discussions over Bob Beers’ bill, AB 357.  AB 357 would clarify NRS 608.160, stating in even firmer language that employers may not take any tips or gratuities bestowed upon their employees.  Former Senator Don Mello, an original author of the bill, testified in favor of AB 357.  He said the bill upheld the intent of the law.

April 13, 2007, the Judiciary Committee was supposed to vote on AB 357.  Days prior, Chairman Bernie Anderson attempted to kill the bill by placing it last in line to be heard.  Tip earners in Nevada protested with phone calls and votes on the online opinion poll.  Chairman Anderson moved the bill to a higher spot on the agenda, but insured it would not pass.  He added his own “amendment” effectively killing tip-pooling.  Anderson did not include Bob Beers’ amendment nor did he allow anyone to speak in favor of AB 357.  The Judiciary Committee voted ‘no’ on Anderson’s amended bill and the true AB 357 was effectively killed.

April 24, 2007, Bernie Anderson surprised tip earners and introduced a tip-pooling amendment to AB 248 thirty minutes prior to the vote. AB 248 was a weak version of AB 357 and passed the Assembly 32-10.

AB 248 was supposed to be heard in the Senate Committee on Judiciary on May 4, 2007, however, on May 1, 2007, Senator Raggio moved to have the bill transferred to the Committee on Commerce and Labor. His request was granted, despite Senator Care's objection. The five-man Committee on Commerce and Labor denied a similar bill attempting to clarify NRS 608.160 in 1995. The current committee chairman, Randolph Townsend, was also the chairman in 1995.

May 18, 2007, AB 248 died in the Committee on Commerce and Labor. The bill never received a hearing.