Former Jake’s 58 Casino Cashier Sues Over Controversial Tip Pooling Policy

A former employee at Jake’s 58 Casino is seeking the return of tips that he alleges managers and supervisors illegally skimmed from him and other tipped workers.

Filed in New York’s Eastern District, the federal lawsuit from plaintiff Kevin Guttinger claims Jake’s 58 allows casino management to participate in the tip pool that is reserved for hourly tipped workers. The lawsuit claims that Jake’s 58 mandates hourly-paid tipped workers to share tips with managers and supervisors who are prohibited from keeping any portion of employees’ tips under the federal Fair Labor Standards Act (FLSA).

Guttinger worked at Jake’s 58 from March 2022 through November 1, 2024, when he claims he was fired in retaliation for challenging management’s participation in the tip pool. According to Guttinger, managers and supervisors administered the pool, which exceeded $50,000 in certain weeks across approximately 50 employees, and took a cut before distributing the remaining funds through payroll.

The lawsuit claims there was no transparency regarding the pool and some supervisors allegedly acknowledged that their participation might be illegal.

Jake’s 58 Casino offers 1,000 slot-like video lottery machines. The property is amid a $210 million expansion that will double the number of gaming positions.

What the Law Says

Enacted in 1938 with President Franklin D. Roosevelt’s signature, the FLSA prohibits an employer, manager, or supervisor from keeping any portion of an employee’s tips.

Guttinger is seeking the reimbursement of the tips he alleges his superiors wrongly took. The proposed class-action litigation seeks to include “all others similarly situated.”

Newsday, which first reported on the lawsuit, said Jake’s 58 declined to comment, saying the casino owned and operated by Suffolk OTB would address the allegations through “the appropriate legal process.”

As a cage cashier, Guttinger executed financial transactions involving vouchers, tickets, and cash. While tipping isn’t customary at the cage, some gamblers will give the employee a small gratuity when cashing out a large win or when completing an unusually time-intensive task, like sorting through a large stack of chips.

As a tipped employee, Guttinger was required to contribute his tips to the pool.

Lawsuit Counts

Along with his and the proposed class’s allegedly stolen tips, Guttinger is seeking lost wages and employment benefits stemming from the alleged retaliation he experienced from voicing complaints about the tip pooling policy.

Guttinger alleges that he met with Jake’s 58 upper management on Feb. 16, 2024, where he formally complained about the tip pool distribution. On Nov. 1, Guttinger says he was terminated.

In December 2025, Mount Airy Casino Resort in the Pennsylvania Pocono Mountains settled a similar tip pooling dispute for $2.3 million. Another tip pooling lawsuit at Ocean Casino Resort in Atlantic City continues.