By Cy Ryan

Thu, Aug 7, 2008 (8:25 p.m.)

CARSON CITY – An initiative petition to stop Las Vegas casino owner Steve Wynn from requiring his dealers to share tips with superiors has been withdrawn.

Kermitt Waters, an attorney for the petition group, confirmed that the petition has been removed by the Secretary of State’s office.

The group backed by a union of gaming employees would have had to collect the signatures of some 58,000 voters by Nov. 11 to be presented to the 2009 Legislature. If the Legislature did not act, then it would have gone on the election ballot.

Wynn started the policy two years ago at Wynn Las Vegas to require the dealers to pool their tips with management. And he planned to institute the policy at the Encore that is scheduled to open later this year.

After the gaming employees filed the petition with the Secretary of State’s Office, Wynn Las Vegas, the Nevada Restaurant Association, the Nevada Tavern Association and other groups filed suit to stop the petition. A federal court dismissed the action and it went back to the state district court in Carson City.

Bob Crowell, attorney for the Wynn organization and other groups, confirmed the petition was being shelved. He called it a victory for not only Wynn but for the culinary union.

There was concerned that waitresses might not be able to share tips with busboys.

Waters said the petition is being withdrawn because Wynn and the other groups threatened to seek attorney fees. He said they asked the federal court to impose fees to cover lawyer expenses on those pushing the tip initiative.

“They threatened us with attorney fees if we didn’t withdraw it,” Waters said. And his clients don’t have that money to cover the judgment if it was awarded.

Crowell, who is running for mayor of Carson City, said the Wynn suit would be dismissed if the petition is withdrawn.

The initiative petition said those employees receiving the tips would decide how they are to be shared. It said it would be illegal for an employer “to determine which employees are eligible to receive an allocation of tips from the shared pool of tips or gratuities…”

The Wynn group complained the petition was illegal because it covered more than one subject. Waters complained that law was a restraint of free speech. And he said he would challenge that law in another case.

A previous petition that sought to impose a tax and then direct where the proceeds would go was declared improper, said Waters.