On Wednesday, the U.S. Supreme Court handed down a landmark ruling that allows businesses to deduct electricity costs from employee wages.
The ruling came just two days after the company that owns the Mandalay Bay Resort & Casino, Mandalay Entertainment Resorts, appealed a lower court decision that found its employees had been illegally paid a $3.8 million lump sum in January for unused power.
The decision was hailed by labor advocates and economists, who argued that the ruling was a victory for workers who rely on electricity in order to stay in the hotels and casinos they run.
But it also comes amid concerns about the potential for power outages and widespread power outage alerts across the nation, according to a report from the Center for Responsive Politics.
The case centers around a woman named Sara, who works for a Las Vegas-based company called Sara Electric, and a man named Richard.
In 2017, Sara was working at a hotel in Nevada when her power went out, and she was unable to get help to power the house.
She filed a lawsuit against the hotel, alleging that the hotel was negligent in allowing her to keep her jobs even though her health was at risk and she didn’t qualify for any insurance.
The suit alleged that the decision by the hotel to pay Sara an amount for her unused power amounted to an illegal take-home wage.
The Las Vegas Metropolitan Utility District (Metro) agreed to pay the $3,922,636.21 to Sara, but in a settlement that allowed Sara to deduct the $921,849.61 she paid for her power.
The $3 million was for electricity that she used to heat her home.
The $3 MillionLawsuit was filed in March 2018.
The plaintiffs alleged that Sara, and not Richard, had been the sole owner of the Mandalays.
They also alleged that Richard had a “non-compete agreement” with Sara that limited his employment rights.
In the case, Sara’s lawyer, Thomas St. Clair, argued that Richard’s “noncompete agreements were simply non-competent non-solicitations and were therefore not enforceable.”
He also noted that Sara was owed $3M in back wages, which he called “an extremely low sum.”
The court disagreed, and ordered the utility district to pay her $971,085.00.
The Supreme Court sided with Sara, ruling that the non-competitive agreements that the utility districts non-comply with the noncomplyment clauses in the noncompete clause.
Sara argued that she didn.
St. Clair also argued that it was improper for the court to consider the fact that the Mandalades is in a highly competitive environment and that the company has already received a number of complaints about power outAGES and outages.
Sara’s attorneys argued that they had a duty to protect the integrity of the Las Vegas economy, and therefore they should have done so.
The court agreed, and ruled that the law should be enforced.
The appeals court ruled that there was a “reasonable probability” that the plaintiffs would prevail.
“If the court were to conclude that there is no reasonable probability that the court would conclude that the Plaintiffs’ claims would succeed, the litigation would have no constitutional effect,” the ruling stated.
The court also rejected Sara’s argument that the Las-Vegas hotel is entitled to the $5M that it paid for the unused power, arguing that the power is not part of the hotel’s property and is therefore not subject to the noncompetitive agreements.