Wynn Las Vegas has taken legal action against Fontainebleau, requesting a Clark County District Court judge to intervene and halt what they claim is the ongoing poaching of their executives by the rival resort.

Wynn’s Legal Filing Claims Fontainebleau Tempts Executives with Salary Boosts

In a recent court filing, Wynn attorneys outlined allegations that Fontainebleau has been actively enticing Wynn executives, who are bound by noncompete agreements, to abandon their positions and join the competitor, reported The Las Vegas Review-Journal. The motion, submitted on April 5, detailed instances where Fontainebleau allegedly offered substantial salary increases to lure Wynn employees away.

The motion asserted that Fontainebleau had repeatedly interfered with and attempted to interfere with Wynn’s employment agreements. It further argued that given Fontainebleau’s past behavior, it is likely to continue such practices, hence the request for an injunction to prevent further disruption of contractual relationships.

This legal tussle began at the beginning of March when Wynn initially filed a lawsuit against Fontainebleau. The complaint alleged persistent efforts by Fontainebleau to convince Wynn employees to switch sides.

The ongoing lawsuit later escalated with the submission of a response from Fontainebleau, including correspondence between the CEOs of both companies, revealing discussions about alleged attempts by Fontainebleau to attract Wynn executives. 

Executive’s Involvement Shapes Wynn-Fountainebleau Legal Battle

One such employee mentioned in the Wynn Las Vegas filing is Wayne Crane, a senior executive director of entertainment for Wynn Nightlife. According to the motion, Crane, who had been with Wynn for over a decade, was approached by Michael Waltman, senior vice president of nightlife at Fontainebleau. Waltman allegedly suggested Crane was undervalued at Wynn and discussed potential opportunities at Fontainebleau, including a significant salary increase.

Crane, although content at Wynn, expressed openness to new prospects, particularly if accompanied by a substantial pay raise. Fontainebleau reportedly offered Crane nearly double his current salary and proposed a workaround for the noncompete clause by assigning him to their Miami branch while allowing him to oversee operations in both Miami and Las Vegas from Nevada.

Crane eventually accepted Wynn’s counteroffer of a new three-year contract with substantially increased pay. This turn of events underscores the intensifying competition for talent in the Las Vegas hospitality industry.

While noncompete clauses are not prohibited in Nevada, legal experts speculate on whether this lawsuit might prompt a reevaluation of such contractual agreements in the state.Judge Mark Denton of Clark County’s business court is expected to rule on Wynn’s request for a preliminary injunction within the next month, marking a pivotal moment in this legal battle between two major players in the Las Vegas hospitality sector.

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The workers, members of the powerful Culinary Workers Union, staged the protest to spotlight their ongoing contract negotiations with three major casino giants – MGM Resorts International, Caesars Entertainment, and Wynn Resorts.

Las Vegas Workers Stage Peaceful Protest as Union Negotiations Intensify

The demonstration saw workers forming two separate circles, strategically positioning themselves in the middle of the bustling thoroughfare, reported the Associated Press. As the sun dipped below the horizon, police officers began the process of arresting around 58 protesters who had engaged in the act of civil disobedience, sitting peacefully in the street.

Yet Lieutenant Mark Lourenco, a spokesperson for the Las Vegas police, assured that the strike action was peaceful.

The Culinary Workers Union, representing approximately 60,000 members, has been negotiating contracts for about 40,000 of its members whose agreements recently expired. Their demands cover a range of issues, including pay raises and improved working conditions. Union spokesperson Bethany Khan stated that all members currently enjoy health insurance and earn an average of $26 per hour, including benefits.

The rally served as a precursor to a potential strike, with the union’s leaders emphasizing their preparedness to take more significant actions if negotiations fail to yield satisfactory results. Ted Pappageorge, the union’s secretary and treasurer, hinted at the possibility of thousands of workers walking off the job in the coming weeks if progress is not made at the bargaining table.

Las Vegas Workers Ready for Massive Walkout as Talks Stall

In the midst of the crowd wearing red shirts, Kimberly Dopler, an experienced cocktail server at Wynn Las Vegas, conveyed the collective determination of the workers. She stated that she hoped the companies would heed their demands and understand that they were serious, indicating their readiness to initiate a walkout.

The Culinary Workers Union, historically a formidable force in Nevada, has not staged a strike in over three decades. Their recent show of strength mirrors a nationwide trend of workers’ strikes, including those in Hollywood and the automotive industry, indicating a growing wave of labor activism across the United States.

Despite ongoing talks, little progress was made, leading to disruptions on the iconic Las Vegas Strip. The talks are set to resume with Caesars Entertainment on October 27, followed by talks with Wynn Resorts on October 30.In an additional shake-up of Sin City, Las Vegas recently grappled with a cybersecurity threat at MGM Resorts International, raising concerns about data security and operational disruptions within the hospitality sector.

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