Experts say Nevada dealers make more than federal statistics show - Friday 12th of August 2005
Nevada gaming dealers make less money than any other dealers in the country, according to newly released federal statistics.
But state employment experts say the numbers are misleading, claiming that casino dealers dont fully report their incomes because they underreport their tips.
Wage data from the Labor Departments Bureau of Labor Statistics indicates Nevadas overall annual average wage ranks 29th of the 50 states and the District of Columbia, Virgin Islands, Guam and Puerto Rico.
Nevadas average wage is $34,060 compared with the national average of $37,020. The semiannual report of wages, taken in May 2004, was released Thursday.
The numbers show that dealers make an annual average wage of $13,410.
That wage doesnt accurately reflect what Nevada dealers probably make, said Jim Shabi, an economist with the Nevada Department of Employment, Training and Rehabilitation. Shabi said DETR is the agency that compiles the wage survey information for the BLS.
"You can be sure tips are never going to be 100 percent accurately reported," Shabi said. "The mix of jobs in the state is clearly one that is skewed toward the lower end."
Shabi noted that the survey is a detailed one that strives to get the most accurate data and includes the reporting of tips, but that tipped occupations are difficult to gauge.
"Its a comprehensive survey, but tip income is one of those areas that is difficult to survey," he said. "Its one of those areas where Nevada is unique because such a large percentage of jobs are tipped."
Arte Nathan, chief human resources officer for Wynn Resorts, said one possible reason for the misrepresentation is the varying ways companies handle their dealers tips.
"Most dealers today, they pool their tips," Nathan said. "So some companies put them on the paycheck, some do not. Some of them when they pool they give them the cash every day. Unless theyre on the paycheck the dealers arent going to report them because they dont want to get taxed."
Nathan suggested that the way the questions are asked could determine the accuracy of workers answers.
"There are dealers in town that are making in excess of $60,000 to $70,000 in tips," he said. "If they are just asking base wages theyve got the correct answer. Unless you ask the question, What is your total compensation including tips? you arent going to get anything more than what youve got. That could hold true for a lot of tipped classifications."
Yvette Monet, an MGM Mirage spokeswoman, agreed with Nathans assessment.
"This number in no way reflects what dealers in Las Vegas are making," Monet said.
Minnesota had the highest average wage for dealers at $26,050.
Other Nevada hospitality positions ranked fairly high on the BLS survey. The wages of Nevadas skin care specialists ranked first with an average of $47,240 per year; Nevadas maids and housekeepers ranked 4th, with an average wage of $21,370; hotel and resort desk clerks ranked 4th with an annual wage of $24,120; gaming managers ranked 4th with an annual wage of $73,750; restaurant cooks ranked 5th in annual wages at $24,100; chefs ranked 8th with annual wages at $39,430 and waiters and waitresses ranked 16th with $16,280 in annual wages.
The data shows that the District of Columbia has the highest wage earners in the nation with a median wage of $45,040, but Shabi said that area has higher unemployment.
Nevada currently has an unemployment rate of 4.2 percent.
"Wages arent the whole picture," Shabi said. "You always want higher paying jobs. Every economic development department in the country, whether theyre the Nevada Development Authority, theyre looking to get clean, high-tech, high education jobs. The problem is everyone is trying to get the same jobs. Nevada has done a passable job of diversification of jobs. Were still dominated by gaming."
He noted that the states wages have risen steadily since 1989, at a rate of about 3.5 percent per year, at or better than the rate of inflation, which means Nevada workers wages havent lost ground to inflation.
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