Jake’s 58 Casino Faces Federal Class Action Over Alleged Manager Participation in Tip Pools
Kevin Guttinger sued Jake’s 58 Casino in New York federal court, alleging managers illegally took shares from tipped-employee pools exceeding $50,000 weekly and that he was fired after complaining. The FLSA bars such participation. Similar cases have produced a $2.3 million settlement and an ongoing Atlantic City suit.
SCCG Take — Operators face class-action exposure and retaliation claims when tip pools include supervisors. Strict exclusion of management, paired with transparent distribution, limits both financial liability and litigation frequency.
A former cage cashier at Jake’s 58 Casino has filed a federal lawsuit claiming the Suffolk County property permitted managers and supervisors to take portions of tips reserved for hourly workers. The complaint alleges this arrangement violates the Fair Labor Standards Act and led to the plaintiff’s retaliatory termination.
Kevin Guttinger worked at the casino from March 2022 through November 1, 2024, when he claims he was fired in retaliation for challenging management’s participation in the tip pool. He alleges that he met with Jake’s 58 upper management on Feb. 16, 2024, where he formally complained about the tip pool distribution. The suit claims he was terminated on Nov. 1.
The action, filed in New York’s Eastern District, describes a pool that exceeded $50,000 in certain weeks and covered approximately 50 employees. Managers and supervisors allegedly administered the pool, deducted their shares, and distributed the balance through payroll. The filing notes a lack of transparency and that some supervisors recognized the possible illegality of their involvement.
What the FLSA Prohibits
The Fair Labor Standards Act, signed in 1938, bars employers, managers, or supervisors from retaining any portion of employees’ tips. The Department of Labor states that this prohibition applies to tip pools because they contain other employees’ tips, regardless of whether a tip credit is used.
Guttinger seeks return of the diverted tips plus lost wages and benefits tied to the alleged retaliation. The complaint proposes a class of all similarly situated workers. Jake’s 58 Casino, owner Suffolk OTB, declined comment and said it would respond through the appropriate legal process, as first reported by Newsday.
Precedent and Exposure
The case is similar to a settlement at Mount Airy Casino Resort in the Pennsylvania Pocono Mountains for $2.3 million in a comparable tip-pooling dispute. A separate lawsuit against Ocean Casino Resort in Atlantic City remains pending. Jake’s 58 operates 1,000 video lottery machines and is midway through a $210 million expansion that will double gaming positions.
Casinos using pooled gratuities must confirm that only eligible tipped staff participate. Any deviation creates both direct liability for withheld amounts and secondary claims for retaliation when employees raise objections.
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