Wynn files lawsuit against Fontainebleau over accusations of poaching its employees

In an attempt to replicate the Wynn experience, Fontainebleau Las Vegas is allegedly stealing employees, according to a complaint filed by Wynn Las Vegas.

According to the lawsuit, Fontainebleau attempted to hire Wynn executive staff members who were bound by contracts that prohibited them from working for the company for a minimum of one year.

The controversy arose during the creation of the executive team in mid-2022, before to Fontainebleau’s opening. Wynn officials claim that Fontainebleau kept hiring until February in spite of prior discussions and agreements between the CEOs of both resorts to stop doing such actions.

Wynn responded by filing a case in Clark County District Court, requesting damages exceeding $15,000 and an injunction against Fontainebleau’s future poaching. Wynn emphasized that although they want all Las Vegas companies to succeed, they want it to happen without getting in the way of the agreements its employees have made in their contracts.

According to the lawsuit, Fontainebleau’s activities are indicative of a “unhealthy obsession” with replicating every aspect of Wynn, including its staff and amenities. It details instances in which executives from Fontainebleau reached out to Wynn employees, including those working in restaurants, nightlife, and executive chef positions, with employment opportunities.

The claimed poaching continued despite a previous lawsuit and settlement between Wynn, Fontainebleau, and one of the hired workers, David Snyder, in which Fontainebleau pledged not to get in touch with Wynn employees while they were under contract. The lawsuit describes Fontainebleau’s hiring practices, including times when hired employees got in touch with former Wynn coworkers.

The lawsuit also details a recent incident whereby the senior vice president of nightlife at Fontainebleau, Michael Waltman, is said to have called the senior executive director of nightlife at Wynn and persuaded him to leave Wynn and join Fontainebleau.

According to Wynn, these kinds of actions have seriously harmed the business and forced it to give staff members significant wage increases in an effort to retain them. Although Wynn acknowledges that other companies may try to steal customers when a new resort opens, the company also states that it is prepared to sue to protect its rights if needed.

Original story by: Las Vegas Review Journal