Wynn Las Vegas Escalates Legal Battle Against Fontainebleau Over Employee Poaching Allegations

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The Wynn Las Vegas has escalated the stakes in the competitive Las Vegas hospitality scene by filing a lawsuit against the newly opened Fontainebleau Las Vegas. The litigation, lodged in Clark County District Court, accuses Fontainebleau of engaging in practices to solicit Wynn executives and high-ranking employees, allegedly encouraging them to breach their current contracts. This legal move comes as Fontainebleau celebrates its opening after nearly two decades of development hurdles, marking a significant addition to the Las Vegas Strip.

Wynn Resorts, in a statement, emphasized its desire for all Las Vegas operators to thrive but insisted on fair play without interference in its contractual agreements with employees. According to the lawsuit, Wynn employees are bound by non-compete clauses that prohibit them from soliciting fellow employees to switch jobs. The complaint details allegations of a systematic approach by Fontainebleau, reportedly courting Wynn executives for over a year and initially placing them in its Miami property to circumvent non-compete clauses, with plans to transfer them back to Las Vegas subsequently.

Fontainebleau Development, facing these serious allegations, has chosen not to comment on the ongoing litigation. The situation had previously reached a point where a temporary restraining order was sought by Wynn in 2022, to which Fontainebleau agreed, pledging not to engage in employee poaching. With the lawsuit, Wynn is now seeking further legal remedies, including another restraining order to prevent any future attempts at poaching, in addition to real and punitive damages.

This lawsuit underscores the intense competition and high stakes in the Las Vegas hospitality industry, where talent is a pivotal asset for maintaining the high service standards and innovation that the city’s resorts are known for worldwide.

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