Judge delays ruling on Station Casinos wage lawsuit

By Cy Ryan

Monday, April 26, 2010 | 3:10 p.m.

RENO – U.S. Bankruptcy Judge Gregg Zive has put a decision on hold in a lawsuit by thousands of current and former Station Casinos employees who say they were shortchanged in their pay.

Zive said he was inclined to allow a district court judge to decide if the employees should be given class-action status. But he withheld a ruling to see if opposing lawyers might reach a settlement.

Cecilia Lee, an attorney for the workers, told the judge “Certification needs to take place.”

Fred Neufeld, representing bankrupt Station Casinos, urged the judge to grant an extension of the stay order. But during a recess, Lee and Neufeld got together to work up an agreement on the processing of the case.

Zive, who intends to take senior judge status next January or February, said the issue has “significant and substantial factual and legal issues.” He said $60 million was at stake if the employees are certified as a class and are successful in their claim.

He estimated 9,000 employees were involved, but attorneys for the workers say it is closer to 20,000.

Neufeld said if workers are successful, there “will be some recovery but the vast amount will be wiped out” when the bankruptcy claims are settled.

The suit by the workers was filed about one week before the bankruptcy petition by Station Casinos, which is facing $6 billion in claims.

Zive encouraged the opposing lawyers to reach agreement and rescheduled the issue for May 4.

Neufeld, a lawyer from Los Angeles, said this issue of the employee pay dispute could wait three to four months until there is a clearer picture on the direction of the bankruptcy.

The suit by the workers alleges that if an employee checks in early for a shift, he or she is not credited with the time. And the same holds true of the worker leaves later.

Employees claim they are the victims of a “rounding” pay system. If an hourly worker arrives up to 14 minutes before the quarter hour, the computer automatically rounded that time forward to the nearest quarter hour. And if the worker checks out past his or her appointed time, the time is rounded back to the nearest quarter.

In the current filing with the bankruptcy court, Station Casinos reported it lost $5.6 million in February, down from the $11.6 million reported in the previous month.