Wynn Resorts and Fontainebleau legal battle

Wynn Resorts and Fontainebleau legal battle

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Wynn Resorts and Fontainebleau legal battle

Wynn Resorts is suing Fontainebleau, claiming the latter is attempting to recruit executives from Wynn that are restricted by noncompete agreements.

In an attempt to enforce their employment agreements, Wynn has launched a lawsuit against Fontainebleau, alleging that the latter has been paying higher salaries to recruit Wynn staff.

Wynn’s lawyers included a list of alleged instances in which Fontainebleau attempted to convince Wynn executives to resign from their positions in their lawsuit. This involves enticing them to join the competitor company with large wage increases. In order to prevent Fontainebleau from stealing their executives and upsetting their contractual obligations, Wynn is requesting an injunction.

Wynn initially filed a complaint against Fontainebleau for trying to persuade Wynn employees to switch sides in March, which sparked the lawsuit. With Fontainebleau’s reaction, the legal dispute escalated, involving conversations between the two businesses’ CEOs regarding purported efforts to entice Wynn executives.

Wayne Crane, senior executive director of Wynn Nightlife, is one of the staff members listed in Wynn’s application. An official from Fontainebleau approached Crane with an almost double pay offer from Wynn. Crane took Wynn’s offer into consideration, but ultimately opted to remain with them when they presented him with a new contract that included a significant pay increase.

This legal issue demonstrates how competitive the Las Vegas hospitality market is. The resolution of this action, particularly if the court grants Wynn’s request for an injunction, may have consequences for Nevada’s noncompete laws.

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