A division has emerged among Nevada Resort Association members over revisions to legislation that would allow laid-off gaming and tourism workers to return to their jobs. One company vows to oppose the modified bill and even seek a veto from Gov. Steve Sisolak.
In an email sent Wednesday morning to the casino industry trade groups representatives, South Point Casino-Hotel attorney Barry Lieberman said many of the changes in SB386 – referred to as “Right to Return” legislation – were “particularly onerous for non-union smaller nonrestricted licensees.”
Lieberman, a long time Nevada gaming attorney and a close adviser to South Point owner Michael Gaughan, voiced concern over several sections of the revised legislation that was passed out of the Senate Commerce and Labor Committee Tuesday evening in a split vote. A deal on the bill was reportedly reached between gaming industry representatives and negotiators for Culinary Workers Union Local 226 with less than a week left before the end of the state's 120-day legislative session.
“We voted to oppose SB386 and seek a veto of the bill by the Governor if the bill passed the Senate and the Assembly,” Lieberman wrote.
Lawmakers voted along party lines, 12-9, in the Senate early Wednesday evening, less than 24 hours after the measure passed out of committee. The changes in the bill are apparently backed by some of the casino industry's largest companies, including MGM Resorts International, Wynn Resorts and Caesars Entertainment — Nevada Resort Association lobbyist Bob Ostrovsky told lawmakers on Tuesday that the association “officially on a majority position is neutral, and we will not support the bill and we will not work against the bill as an association, we are neutral.”
In an interview, Lieberman said the legislation treats “non-union resorts in the same manner” as properties with collective bargaining agreements. Representatives from other casino companies declined comment.
Lieberman termed several amendments to SB368 as “a confusing patchwork of vague, burdensome and non-helpful requirements.” He said the changes force employers “to guess at their peril as to what the bill actually requires them to do.”
He suggested the changes to the bill “impairs” an employer’s right to rehire casino workers who have “superior skills” as opposed to other laid-off workers.
Lieberman said the Nevada legislation’s passage will actually “discourage employers from hiring new employees.” Under the legislation, properties cannot hire a new employee for a position until all the provisions for full-time and part time employees “have been satisfied.”
Four sections in the legislation fail “to draw any distinctions between on-call, part time or full-time employees,” the attorney wrote in analyzing the 20-page document. The new language, Lieberman said, is “ambiguous” in describing the timelines for laid off workers and could be viewed as more favorable to part time employees as opposed to full-time employees.
The section requiring businesses to notify laid-off workers of layoffs “makes no sense.”
In the email, Lieberman said a decision was made by a majority of members of the Resort Association’s executive committee to remain neutral “in exchange for negotiating out of SB386 some of the more onerous provisions.” He said the decision was opposed by South Point.
The Culinary Union, which represents some 60,000 non-gaming workers in Nevada’s hotel-casino industry, has said just 50 percent of the workforce has been hired back since gaming reopened following a 78-day shutdown last year. Labor organization officials said SB386 is needed to ensure its members are able to return to their previous jobs.
AFL-CIO Secretary-Treasurer Rusty McAllister, in a statement, called the legislation a “common-sense measure that is urgently needed to create stability in Nevada’s workforce.”
As part of the agreement between the casinos and the union, revisions will be made to SB4, a bill from the 2020 special session last summer that includes government-imposed health and safety standards meant to prevent the spread of COVID-19, as well as expanded liability protections for major casino resorts. The amendment relaxes requirements on cleaning, such as cleaning minibars, headboards and decorative items on beds, and changes directives to clean throughout the day to instead call for cleaning daily.
Bill sponsor and Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) credited the Culinary Union, Nevada Resort Association and the governor’s office for working together to arrive at a consensus on the high-profile legislation.
SB386 would allow workers in the gaming and travel sectors a right to return to their jobs. The bill covers those workers laid off after March 12, 2020 and who were employed for at least six months in the year prior to the governor’s first COVID-19 emergency declaration.
The legislation is similar to at least a half-dozen other bills backed by the labor organization in other states. California Gov. Gavin Newsom, a Democrat, signed legislation last month that requires hospitality and service industry employers to offer new positions to laid off workers.
This story was updated on May 26 at 8:18 p.m. to reflect that the bill passed out of the Senate.