Casino may have included ‘agents’ in tip pool policy

April 2009Articles Hospitality Law

In the case, Lu v. Hawaiian Gardens Casino Inc., a California casino received a mixed decision retarding its employer-mandated tip pool. The court of appeals granted the employer's summary judgment motion on various issues, but allowed the case to proceed to discover if the tip pool included "agents" of the casino. Lu is a perfect example of the issues that can arise when mandating tip pools, especially since laws concerning tip pools are not standard, making compliance by employers difficult.

The outcome of this case will only lead to more costly litigation for casinos over their tip pool; therefore, it is all the more important for employers to have regular audits of their tip pool practices.