Fontainebleau Faces Wynn Lawsuit over Alleged Employee Poaching

Rivalry within the gambling industry is fierce, which is one of the main reasons why many leading gambling operators include non-compete clauses in their contracts with senior-level employees. A non-compete clause effectively restricts the employee from being employed with a rival company. Such clauses can be applicable for different durations with one year being a popular option. Once an employee signs their contract with a casino operator and agrees to this particular clause, they may be subject to litigation if they breach it.

In one such case dating back a few years ago, Wynn Resorts filed a lawsuit against Fontainebleau Las Vegas after one of its employees left it to join the rival company. The legal battle was over David Snyder, a C-suite member who played a pivotal role in Wynn Resorts’ expansion across the globe. But in June 2022, Snyder informed Wynn that he planned to leave the company and join Fontainebleau in July of the same year.

Once the transition happened, Wynn filed a lawsuit, alleging that Fontainebleau hired Snyder, who was tasked with the opening of its new resort located on the Las Vegas Strip. This lawsuit was eventually settled between the duo with Fontainebleau agreeing not to engage in poaching of any Wynn Resorts employees.

Despite the aforementioned agreement, Wynn filed a new lawsuit, alleging Fontainebleau continues to poach its employees. The legal claim was filed with the Clark County District Court on Thursday. In its lawsuit, Wynn alleges Fontainebleau continues to poach its high-level employees, encouraging them to leave the company. Wynn’s lawsuit described a number of cases where it claimed Fontainebleau Las Vegas engaged with its employees.

Fontainebleau Allegedly Visited Wynn in an Attempt to Poach Employees

The legal claim lists Fontainebleau Development LLC, Fontainebleau Las Vegas II LLC and Bowtie Development LLC, doing business as Fontainebleau Las Vegas, as defendants, a report released by the Las Vegas Review-Journal reveals. Besides the aforementioned entities, the lawsuit includes ten unnamed individuals who are also listed alongside Fontainebleau Las Vegas.

“Clearly, we want all operators in Las Vegas to be successful; it’s good for the city in which we all live. We just want that to happen without interference in the contractual agreements our employees have negotiated with us,” reads the recently filed lawsuit.

Additionally, Wynn claimed Fontainebleau “simply cannot stop interfering with WLV’s employment contracts,” adding that the company demonstrates “an unhealthy obsession with everything Wynn, from its amenities to its employees.” Details within the legal claim allege Fontainebleau officials visited Wynn in an attempt to engage in talks with senior-level workers of the company. Wynn described a number of cases within its 10-page lawsuit.