Boyd Gaming Corp. v. Commissioner

T.C. Memo. 1997-445

UNITED STATES TAX COURT

BOYD GAMING CORPORATION, F.K.A. THE BOYD GROUP
AND SUBSIDIARIES, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent

CALIFORNIA HOTEL & CASINO AND SUBSIDIARIES, Petitioners
v. COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket Nos. 3433-95, 3434-95. Filed September 30, 1997.

Ps provide free meals to their employees in
private cafeterias located on Ps' business premises.
R determined that sec. 274(n)(1), I.R.C., limits Ps’
deduction for the cost of these meals. Ps argue that
they may deduct 100 percent of their costs under the de
minimis fringe benefit exception of sec. 274(n)(2)(B),
I.R.C., which requires in this case that Ps provide the
meals to each of substantially all of their employees
for a substantial noncompensatory business reason.
Held: Ps' deduction is limited by sec. 274(n)(1),
I.R.C.; the de minimis fringe benefit exception of sec.
274(n)(2)(B), I.R.C., is inapplicable under the facts
herein because Ps do not provide the meals to each of
substantially all of their employees for a substantial
noncompensatory business reason.
 - 2 -

Thomas P. Marinis, Jr., J. Barclay Collins III,

Sarah A. Duckers, and Charles L. Almond, for petitioners.

Paul L. Dixon and Barbara S. Trethewy, for respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION

LARO, Judge: The docketed cases are before the Court

consolidated for purposes of trial, briefing, and opinion.

California Hotel & Casino (CHC) petitioned the Court to

redetermine respondent's determination of deficiencies of

$81,761, $14,428, and $42,124 in its consolidated group's 1982,

1984, and 1987 Federal income tax, respectively. Boyd Gaming

Corp. (Boyd) petitioned the Court to redetermine respondent's

determination of a $152,346 deficiency in its consolidated

group's 1988 Federal income tax.

Following concessions by the parties, we must decide whether

petitioners' deductions for food and beverages provided to their

employees without charge on petitioners' business premises are

limited by section 274(n)(1). In Boyd Gaming Corp. v.

Commissioner, 106 T.C. 343, 344, 349 (1996), we held in summary

adjudication that section 274(n)(1) does not limit petitioners'

deductions if the food and beverages are a de minimis fringe

benefit under section 274(n)(2), which, in turn, requires that

petitioners provide the food and beverages to each of

substantially all of their employees for the "convenience of the
 - 3 -

employer" under section 119.1 We hold herein that petitioners do

not provide the food and beverages to each of substantially all

of their employees for the convenience of the employer, and,

hence, that petitioners' deductions are limited by section

274(n)(1) because the food and beverages are not a de minimis

fringe benefit under section 274(n)(2)(B). Unless otherwise

stated, section references are to the Internal Revenue Code in

effect for the years in issue. Rule references are to the Tax

Court Rules of Practice and Procedure.

FINDINGS OF FACT

Some of the facts have been stipulated and are so found.

The stipulated facts and the exhibits submitted therewith are

incorporated herein by this reference. The record consists

mainly of these stipulated facts and exhibits and the testimony

of numerous witnesses, all of whom were called by petitioners.

Petitioners' primary witnesses were: (1) Robert Boughner,

petitioners' executive vice president during the subject years,

(2) John Repetti, CHC's casino manager during the subject years,

(3) Steve Thompson, the general manager of Fremont Hotel & Casino

(Fremont) during the subject years, (4) Bruce Fraser, the

assistant general manager of Sam’s Town Hotel & Gambling Hall

1
The President recently signed into law the Taxpayer Relief
Act of 1997 (the 1997 Act), Pub. L. 105-23, 111 Stat. 788.
Sec. 970 of the 1997 Act, 111 Stat. 897, effective for taxable
years beginning after Dec. 31, 1997, amended sec. 132(e)(2) so
that the cost of a meal provided to an employee for the
convenience of the employer may be deducted in full. This
amendment parallels the Court's holding in Boyd Gaming Corp. v.
Commissioner, 106 T.C. 343, 344, 349 (1996).
 - 4 -

(Sam’s Town) during the subject years, (5) John Miner, who joined

the Stardust Hotel & Casino (Stardust) in July 1988 and served as

its general manager throughout the remainder of the subject

period, and (6) Mary Ann Burns, who joined the Stardust in

October 1988 and served as its director of hotel operations

throughout the remainder of the subject period.

CHC and Boyd are Nevada corporations whose principal offices

were in Las Vegas, Nevada, when they petitioned the Court. For

its taxable year ended June 30, 1988 (the 1987 taxable year),

CHC was the parent of an affiliated group of corporations that

filed a consolidated Federal income tax return. CHC's affiliated

group included: (1) Sam-Will, Inc., doing business as Fremont,

and (2) Mare-Bear, Inc., doing business as Stardust. CHC also

did business as Sam’s Town. By virtue of a reorganization of the

group, Boyd became the parent of the affiliated group beginning

with the 1988 taxable year. Boyd's affiliated group included:

(1) CHC, which sometimes did business as Sam’s Town,

(2) Sam-Will, Inc., doing business as Fremont, and (3) Mare-Bear,

Inc., doing business as Stardust.

Petitioners operate CHC, Fremont, Sam's Town, and Stardust

(collectively, the Properties). Each of the Properties is a

large resort or hotel complex located in Las Vegas, Nevada. CHC

and Fremont are located downtown. Stardust is located a "stone's

throw" away from CHC and Fremont, in an area commonly known as

"the Strip". Sam's Town is located approximately 6 miles from

the Strip and approximately 6 miles from downtown.
 - 5 -

Each of the Properties has casino, restaurant, and hotel

facilities; the hotel rooms tend to run at close to full

occupancy, and the hotel guests tend to "turn over" weekly.

Some of the Properties also have convention and/or entertainment

facilities. As of June 30, 1989, CHC had 635 hotel rooms,

222 R.V. parking spaces, four restaurants, two lounges, 35 gaming

tables, 81 keno seats, 18 race and sports book seats, and

970 slot machines. Fremont had 450 hotel rooms, five

restaurants, one lounge, 48 gaming tables, 58 keno seats, 142

race and sports book seats, and 952 slot machines. Stardust had

1,367 hotel rooms, 370 R.V. parking spaces, six restaurants, one

showroom, one lounge, 84 gaming tables, 105 keno seats, 300 race

and sports book seats, and 1,324 slot machines. Sam's Town had

204 hotel rooms, 508 R.V. parking spaces, eight restaurants, one

lounge, 57 gaming tables, 166 keno seats, 193 race and sports

book seats, and 1,892 slot machines. Sam's Town also had a 56-

lane bowling alley and a 25,000-square-foot retail area called

the Western Emporium.

Each of the Properties is located in a heavily populated

area of Las Vegas near numerous eating facilities, including fast

food restaurants, competitor casino restaurants, ethnic

restaurants, sandwich shops, pizza houses, food courts, and

convenience stores. Many of these eating facilities serve meals

24 hours a day. The aggregate seating capacity of the eating

facilities, exclusive of the casino restaurants, near Stardust

and Sam's Town is in both cases more than 1,100 diners. The
 - 6 -

aggregate seating capacity of the eating facilities, exclusive of

the casino restaurants, near CHC and Fremont is in both cases

more than 650 diners. The record does not disclose the seating

capacity of the casino restaurants near CHC, Fremont, Stardust,

or Sam's Town. CHC and Fremont have 11 competitor casinos

situated nearby, and these competitors house numerous restaurants

offering an assortment of meals including fast food, ethnic food,

buffet food, sandwiches, and pizza. The same assortment of

restaurants is present in the 11 competitor casinos located near

Stardust. Sam's Town has two competitor casinos nearby, one of

which has a pasta buffet, a cafeteria, and a delicatessen.

Most of the major casinos in Las Vegas provide meals to

their employees at no charge in private eating facilities located

on the casinos' premises. In order to attract and keep

employees, petitioners offer compensation and benefits packages

to their employees that are highly competitive with those of

other similar employers. Included in these packages is the

benefit of a meal or meals during, and/or in some cases before or

after, an employee's shift. Petitioners opted before the subject

years to provide meals to all of their employees after it was

decided, by the management of the affiliated group's parent, that

petitioners would generally require their employees to stay on

the premises throughout their shifts and that it was unreasonable

to require full-time employees to stay on the premises for an

8-hour shift without offering them meals. Management believed

that it was essential to petitioners' operations that 75 to 80
 - 7 -

percent of their employees (by name and not by number) stay on

the premises throughout their shifts, and that these employees

deserved meals for having to stay on the premises. Management

also believed that it was not essential to petitioners' operation

to keep the remaining 20 to 25 percent of the employees on the

premises throughout their shifts, but petitioners would generally

require these employees to stay on the premises, and offer them

meals, as a matter of consistency. The meals that petitioners

provide to their employees include hot meals, cold foods, and

snacks (collectively referred to as the meals). Petitioners

provide the meals to their employees as a form of compensation,

and petitioners’ provision of the meals is not discriminatory in

favor of highly compensated employees.

Petitioners provide the meals to the employees at each

Property in a private employee cafeteria (the Cafeteria) that is

located on the Property's premises. Each of the Properties owns

and operates its Cafeteria, and each Cafeteria is separate from

the public restaurants located on the Properties, which, in turn,

are separate from the alcohol bars on the premises. Employees

receive the meals without charge, and it is petitioners' policy

to provide the meals in the Cafeterias only to employees.

Petitioners occasionally serve in the Cafeterias the surplus food

from their banquets or buffets. Petitioners do not quantify the

amount of surplus food consumed in the Cafeterias, and they do

not accurately account for any of the food served in the

Cafeterias. Petitioners keep no records that identify how many
 - 8 -

meals are served in the Cafeterias, who eats in the Cafeterias,

how many times an employee eats in the Cafeterias, or on what day

an employee eats in the Cafeterias. Petitioners keep no records

that show that an employee eats in the Cafeteria only on the days

that he or she works. Petitioners' employees do not have to eat

the meals served in the Cafeterias. Petitioners' employees may

eat, in or outside of the Cafeterias, food brought onto the

Properties.

The Cafeterias seat approximately the following number of

people:

Cafeteria at CHC 65-90
Cafeteria at Fremont 92
Cafeteria at Sam's Town 200-250
Cafeteria at Stardust 160-180

Each of the Cafeterias is open 7 days a week, 24 hours per day,

except when closed for cleaning. Cleaning occurs once a week on

the graveyard shift (as defined below), during which time

employees are allowed to eat in the public restaurants. In

addition to the right to eat in the Cafeterias, approximately 10

percent of petitioners' employees (generally management and

supervisory employees) also may eat in the Properties' public

restaurants. Petitioners do not allow other employees to eat in

these public restaurants while on duty, except when a Cafeteria

is closed for cleaning. Petitioners keep no records that

identify how many meals are served to employees in the public

restaurants, the employees who actually eat in the public

restaurants, how many times an employee eats in the public
 - 9 -

restaurants, or on what day an employee eats in the public

restaurants. Petitioners keep no records that show that an

employee who is allowed to eat in the public restaurants eats

there only on the days that he or she works.

It is petitioners' policy that employees may enter the

Cafeterias freely whenever they are open, and that employees need

not sign in at a Cafeteria upon entrance or sign for food when

received. It is petitioners' policy that employees may not eat

in the Cafeterias on a nonworking day or bring guests to eat in

the Cafeterias at all. It is petitioners' policy that employees

who violate the policy of the Cafeterias are subject to

dismissal. Petitioners do not formally monitor any of the

policies for the Cafeterias. Petitioners oversee each employee's

adherence to these policies through an honor system and an

informal policing that is incidental to an employee's presence in

the Cafeteria. Employees have been disciplined, suspended,

and/or dismissed from employment for violating petitioners'

policies for the Cafeterias.

Petitioners employed the following numbers of people at the

Properties in 1988 and 1989:

1988 1989

CHC 1,002 1,052
Fremont 936 878
Sam's Town 1,402 1,508
Stardust 2,251 2,406

The table below has a breakdown of these employees by Property,

job classification, job code, and job description. The table
 - 10 -

also lists the number of meals that each employee is entitled to

receive during his or her shift (or whether the employee is

authorized to eat in the public restaurants on the Properties for

a reason other than that the Cafeterias are closed for cleaning),

the minutes that the employee receives for meals and other

breaks, and the number of employees who wear uniforms at work (at

other than Sam's Town). The record does not indicate which

employees at Sam's Town wear uniforms during work. An appendix

to petitioners' brief lists the employees at Sam's Town who

petitioners allege wear uniforms. This appendix, however, is

not evidence, Rule 143(b), and we give no consideration to it.
 CHC
MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Accounting 400A ACCT CLK IV No 5 6 1 60 0
Accounting 402 ACCTG CLERK II No 10 2 1 60 0
Accounting 401 ACCTG CLK III No 10 17 1 60 0
Accounting 303E ACT CLK SUPV No 2 3 0 60 0
Accounting 167E ASST CONTROLLER No 1 1 0 60 0
Accounting 300 CHIEF ACCT No 0 1 1 60 0
Accounting 166E CONTROLLER No 1 1 0 60 0
Accounting 168E PAYROLL SUPV No 1 1 0 60 0
Accounting 519 RECEIVER Yes 5 5 1 60 0
Accounting 546 STOCK CLERK Yes 4 4 1 60 0
Administrative 285 ADMIN CLRK No 2 1 1 60 0
Administrative 172E DIR HUM RES No 0 1 0 60 0

- 11 -
2 2
Administrative 057 EMP RELATIONS DEV MGR No 1 0 1
Administrative 184 EMPL RELATIONS MGR No 0 1 1 60 0
Administrative 101 HR SPCLST No 0 4 1 60 0
Administrative 277E OFFICE MGR No 0 1 0 60 0
Administrative 306 PURC AGENT No 2 2 1 60 0
Administrative 282 SECRETARY No 6 6 1 60 0
Casino 253E ASST R/S MGR No 0 1 0 60 0
Casino 281E ASST SLOT MGR Yes 1 1 0 60 0
Casino 314 AST CAG SHFT Yes 3 3 1 60 0
Casino 252E AST CAG/CRED No 1 1 0 60 0
Casino 154E AST CASINO MGR No 1 1 0 30 1(30)
Casino 258 AST COIN MGR Yes 2 2 1 60 0
2
Casino 311 BOXPERSON Yes 8 7 1 7(20)
Casino 313E CAG SHFT SUPV No 3 3 0 60 0
Casino 431 CAGE CASHIER Yes 36 45 1 60 0
Casino 157E CAGE/CRED MGR No 1 1 0 60 0
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Casino 310E CASINO FLOOR SUPERVISOR No 20 21 0 30 1(30)
Casino 153E CASINO MGR No 1 1 0 30 1(30)
Casino 156E CASN PIT BOSS No 6 6 0 30 1(30)
Casino 155E CASN SHFT MGR No 3 3 0 30 1(30)
Casino 438 CHANGE ATTDT Yes 71 68 1 30 2(15)
Casino 195 COIN RM MGR Yes 1 1 1 60 0
Casino 107 COIN ROOM MAINT Yes 0 1 1 60 0
Casino 443 CREDIT CLERK Yes 1 2 1 60 0
Casino 442 CREDIT CLERK II No 1 1 1 60 0
Casino 441 CREDIT CLERK III No 1 1 1 60 0
2
Casino 453 DEALER 21 Yes 98 90 1 7(20)
2
Casino 452 DEALER DICE Yes 55 55 1 7(20)
Casino 095E DIR GAMING SCHOOL No 0 1 0 60 0
Casino 105 GAMING SCH INSTR No 0 2 1 60 0
2 2
Casino 106 GAMING SCHOOL INSTRUCTO No 3 0 1

- 12 -
Casino 465 HRD COUNT ATN Yes 7 9 1 60 0
2 2
Casino 321 KENO 2ND Yes 3 0 1
2 2
Casino 474 KENO 3RD Yes 2 0 1
Casino 473E KENO COMP STA Yes 0 3 0 60 0
Casino 562 KENO HOST Yes 1 1 1 60 0
Casino 186E KENO MGR No 1 1 0 60 0
Casino 320E KENO SHFT MGR No 3 3 0 60 0
Casino 475 KENO WRITER Yes 32 29 1 30 2(15)
Casino 170 MASTR SLOT TEC No 1 1 0 60 0
Casino 517 R/S TELLER Yes 3 3 1 60 0
2 2
Casino 158E RACE/SPORTS MANAGER No 1 0 0
Casino 359 SLOT AREA SUPV Yes 0 6 1 60 0
Casino 574 SLOT CLUB ATTD Yes 0 7 0 60 0
2 2
Casino 317 SLOT FLRPRSN Yes 24 0 1
Casino 316 SLOT HOST No 3 4 1 60 0
Casino 169E SLOT MGR No 1 1 0 60 0
Casino 627 SLOT SERVICE ATTD Yes 0 26 1 60 0
Casino 315E SLOT SHFT MGR No 4 4 0 60 0
Casino 538 SLOT TECH I Yes 2 6 1 60 0
Casino 537 SLOT TECH II Yes 3 2 1 60 0
Casino 187E SPORTS BK MGR No 0 1 0 30 1(30)
Engineering 259E AST FCLTY MGR Yes 1 1 0 30 2(15)
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 - 13 -
MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Engineering 160E FACILITY MGR Yes 1 1 0 30 1(30)
Engineering 479 LABORER Yes 3 5 1 30 2(15)
Engineering 491 MAINT ENG HELPER Yes 0 1 1 30 2(15)
Engineering 490 MAINT ENGINEER Yes 11 11 1 30 2(15)
Engineering 501 PAINTER Yes 1 2 1 30 2(15)
Engineering 605 SHOP CARP II Yes 0 1 1 30 2(15)
2 2
Engineering 606 SHOP CARP II Yes 1 0 1
Executive 014E EX VP/GEN MGR No 1 1 0 60 0
Executive 279E EXEC SECRTY No 2 2 0 60 0
Food & Bevera 201E ASST FD DIRECTOR No 0 1 0 60 0
Food & Bevera 262 AST CHEF Yes 2 1 1 60 0
Food & Bevera 558 BANQ SERVER Yes 0 1 1 30 2(15)
2 2
Food & Bevera 416 BAR BACK Yes 5 0 1
Food & Bevera 415 BARTENDER Yes 13 20 1 60 0
Food & Bevera 165E BEV MGR No 0 1 0 30 0
Food & Bevera 428 BUS PERSON Yes 43 43 1 40 1(20)
Food & Bevera 437 CASHIER-FD Yes 7 7 1 60 0

-13-
Food & Bevera 439 COCKTAIL SERV Yes 35 29 1 60 0
Food & Bevera 455 DINING RM RUN Yes 0 4 1 60 0
Food & Bevera 164E EXECUTVE CHEF Yes 1 1 0 60 0
Food & Bevera 162E FD/BEV DIR No 1 1 0 60 0
Food & Bevera 352E FOD SHFT SUP No 4 6 0 30 0
Food & Bevera 461 FOOD SERVER Yes 49 43 1 40 1(20)
Food & Bevera 353 HOST PERSON Yes 15 15 1 40 1(20)
Food & Bevera 425 KIT RUNNER Yes 0 1 1 60 1(20)
Food & Bevera 478 KITCHN HELP Yes 37 36 1 40 1(20)
Food & Bevera 477 LD KIT HELP Yes 1 3 1 40 1(20)
Food & Bevera 480 LD LINE COOK Yes 2 5 1 40 1(20)
Food & Bevera 488 LINE COOK Yes 12 13 1 40 1(20)
Food & Bevera 510 PREP COOK 1 Yes 14 17 1 60 0
Food & Bevera 509 PREP COOK II Yes 6 8 1 40 1(20)
Food & Bevera 508 PREP COOK III Yes 3 5 1 40 1(20)
2 2
Food & Bevera 351E RESTAURANT MGR No 1 0 0
Food & Bevera 539 SNAC BAR ATDN Yes 11 10 1 60 0
Food & Bevera 354E SOUS CHEF Yes 1 3 0 60 0
Food & Bevera 541 SPEC BUS PERS Yes 9 9 1 30 0
Food & Bevera 542 SPEC FD SERVR Yes 16 14 1 30 0
Food & Bevera 543 SPEC LD LN CK Yes 2 2 1 60 0
 1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Food & Bevera 544 SPEC LINE CK Yes 4 4 1 60 0
Hotel 257E AST EXEC HSKG No 0 1 0 60 0
Hotel 419 BELL PERSON Yes 8 8 1 40 2(10)
Hotel 565 CAR WASHER No 0 9 1 60 0
2 2
Hotel 446 CUSTODIAN I Yes 39 0 1
Hotel 445 CUSTODIAN II Yes 11 54 1 30 2(15)
Hotel 198E DIR HTL OPRTN No 0 1 0 45-60 0
Hotel 256E EXECUT HSKPR No 1 1 0 60 0
Hotel 204 FRONT DESK SUPV No 0 1 1 60 0
Hotel 575 GARAGE BOOTH ATTD Yes 0 1 1 60 0
Hotel 464 GUEST RM ATND Yes 62 62 1 30 2(15)
Hotel 333 GUEST ROOM SUPERVISOR Yes 6 6 1 30 2(15)
Hotel 472 HOTEL CLERK I No 4 4 1 60 0
Hotel 471 HOTEL CLK II Yes 11 10 1 60 0
2 2
Hotel 191E HOTEL MGR No 1 0 0

- 14 -
Hotel 481E LD PARK ATDNT Yes 1 1 0 30 2(15)
2 2
Hotel 336 LEAD CUSTODIAN Yes 3 0 1
Hotel 335 LEAD CUSTODIAN Yes 0 3 1 60 0
Hotel 489 LINEN RM ADTN Yes 2 2 1 60 0
Hotel 268 MGR CUST SVC No 1 1 1 60 0
Hotel 502E PARKG ATDNT Yes 5 5 0 30 2(15)
Hotel 194 PBX MANAGER No 1 1 1 60 0
Hotel 503 PBX OPERATOR No 8 8 1 60 0
Hotel 255E ROOM RESERV MGR No 1 1 0 60 0
Hotel 525 RV PARK ATTD No 1 1 1 60 0
Hotel 523 RV PARK CLRK No 3 3 1 60 0
Hotel 524 RV PARK LD ATTD No 3 1 1 60 0
Hotel 193 RV PARK MGR No 1 1 1 60 0
MIS 440A COMPUTR OPRTR No 3 3 1 60 0
MIS 304E D P SUPERV No 1 1 0 60 0
MIS 534A SR COMP OPERT No 1 1 1 60 0
Sales & Market 209E ADV & PUB MGR No 1 1 0 60 0
Sales & Market 196E DIR AD/PB/PRO No 1 1 0 60 0
Sales & Market 177E DIR SALES No 0 1 0 60 0
Sales & Market 339A GRP SALES MGR No 1 1 1 60 0
Sales & Market 463A GRP SALES REP No 2 3 1 60 0
 2 2
Sales & Market 512 PROMOTIONS ATTD No 3 0 1
2 2
Sales & Market 338 PUBLICITY/PROMO/ADV ASST No 1 0 1
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.

MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Security 261E ASST SECURITY MGR No 1 1 0 60 0
Security 159E SECURITY MANAGER No 1 1 0 60 0
Security 532 SECURITY DISPATCHER Yes 4 4 1 60 0
Security 533 SECURITY OFF/IN Yes 14 16 1 60 0
Security 552 SECURITY OFFICER-OUT Yes 15 17 1 60 0
Security 331E SECURITY SHFT No 4 3 0 60 0
Security 548 SURVEIL AGENT No 3 2 1 60 0
Total 1,002 1,052

FREMONT
2
Accounting 400A ACCT CLK IV No 5 5 1 60
2
Accounting 401A ACCTG CLK III No 10 10 1 60
2
Accounting 403 ACCTG CLRK I No 4 4 1 60
2
Accounting 402A ACCTG CLRK II No 11 10 1 60

- 15 -
2
Accounting 303 ACCTG CLRK V No 1 1 1 60
2 2
Accounting 167 ASST CONTROLLER No 1 0 1
2
Accounting 166E CONTROLLER No 1 1 0 60
2
Accounting 301 INVNTRY CNTRL No 1 1 1 60
2
Accounting 168A PAYROLL SUPV No 1 1 1 60
Accounting 519 RECEIVER Yes 4 3 1 30 2(15)
2
Accounting 300 SR ACCOUNTANT No 1 2 1 60
2
Administrative 285 ADMIN CLERK No 1 1 1 60
2
Administrative 172E DIR INTOPRN/HUM RES No 1 1 0 60
2
Administrative 176 EMP REL/DEVMT No 0 1 1 60
2
Administrative 057 EMPL REL MGR No 1 0 1 60
2
Administrative 568 EMPLMT CLRK No 0 1 1 60
2
Administrative 101 HR SPECIALIST No 0 1 1 60
2
Administrative 306 PURC AGENT No 2 2 1 60
2
Administrative 290 RECEPTIONIST No 1 0 1 60
2
Administrative 282 SECRETARY No 4 5 1 60
 - 16 -
2
Casino 406 ADM TERM OPTR Yes 4 3 1 60
2
Casino 252 ASST CAGE/CREDIT No 1 1 1 60
2
Casino 253 ASST R/S MGR No 1 1 1 60
2
Casino 314 AST CAG SHFT No 1 0 1 60
2
Casino 258 AST COIN MGR No 1 1 1 60
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
2 2
Casino 422 BINGO AGENT Yes 11 0 1
2
Casino 190E BINGO MGR No 1 1 0 60
2 2
Casino 330 BINGO SHFT MGR Yes 2 0 1
Casino 311 BOXPERSON No 14 11 1 20 7(20)
2 2
Casino 404 BRD PRSN CORD Yes/No 2 2 1
2
Casino 427 BRUSHPERSON No 3 3 1 60
2
Casino 313 CAG SHFT SUPV No 3 3 1 60
2
Casino 431 CAGE CASHIER Yes 24 19 1 60
2
Casino 157E CAGE/CRED MGR No 1 1 0 60
2
Casino 189E CARD RM MGR No 1 1 0 60
Casino 421 CAROUSEL ATN Yes 26 15 2 40 2(10)
2
Casino 310 CASINO FLOOR SUPERVISOR No 18 23 1 40
2
Casino 153E CASINO MGR No 1 1 0 60
2
Casino 156E CASN PIT BOSS No 5 5 0 60

- 16 -
2
Casino 155E CASN SHFT MGR No 4 4 0 60
Casino 438 CHANGE ATTDT Yes 35 45 2 40 2(10)
2 2
Casino 555 CHG PRSN TRNR Yes 1 0 1
2
Casino 195 COIN RM MGR Yes 1 1 1 60
2
Casino 326 CRD SHFT MGR No 1 3 1 60
2
Casino 443 CREDIT CLERK No 1 2 1 60
Casino 453 DEALER 21 Yes 98 110 1 20 +7(20)
Casino 452 DEALER DICE Yes 35 37 1 20 +7(20)
Casino 451 DEALER-CRD RM Yes 33 29 1 20 +7(20)
2
Casino 175E DIR SLOT OPRN No 1 1 0 60
2 2
Casino 318 HOSP CNTR SUP No 1 0 1
2
Casino 465 HRD COUNT ATN Yes 5 5 1 60
2 2
Casino 321 KENO 2ND No 2 0 1
2
Casino 473 KENO COMP STA Yes 0 3 1 60
2
Casino 186E KENO MGR No 1 1 0 60
2
Casino 476 KENO RUNNER Yes 4 2 1 60
2
Casino 320 KENO SHFT MGR No 2 2 1 60
2
Casino 475 KENO WRITER Yes 21 17 1 60
Casino 513 PROP PLAYER Yes 3 0 1 20 7(20)
2 2
Casino 513 PROP PLAYER Yes 1 1 60
2 2
Casino 516 R/S CASHIER Yes 4 0 1
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
2
Casino 323 R/S SHFT SUPV No 1 2 1 60
2
Casino 517 R/S TELLER Yes 11 13 1 60
2
Casino 188E RACE BOOK MGR No 1 1 0 60
2
Casino 158E RACE/SPORTS MANAGER No 1 1 0 60
2
Casino 291 RUNNER No 1 1 1 No Runner
2
Casino 359 SLOT AREA SUPV Yes 0 5 1 60
2
Casino 574 SLOT CLUB ATD Yes 0 8 1 60
2
Casino 375 SLOT CLUB SUPV Yes 0 2 1 60
2
Casino 317 SLOT FLRPRSN Yes 21 17 1 60
2
Casino 316 SLOT HOST No 3 2 1 60
2
Casino 169E SLOT MGR No 1 1 0 60
2
Casino 315 SLOT SHFT MGR No 3 3 1 60
2
Casino 537 SLOT TECH II Yes 6 6 1 60
2 2
Casino 187E SPORTS BK MGR No 1 0 0

- 17 -
2
Casino 010E VP CSNO OPRN No 1 1 1 60
2
Engineering 259 AST FCLTY MGR No 1 1 1 60
Engineering 436 CARPENTER Yes 1 1 1 30 2(15)
Engineering 459 ELECTRICIAN Yes 4 5 1 30 2(15)
2
Engineering 160E FACILITY MGR No 1 1 0 60
Engineering 479 LABORER Yes 1 2 1 30 2(15)
Engineering 490 MAINT ENGINR Yes 8 10 1 30 2(15)
Engineering 501 PAINTER Yes 1 1 1 30 2(15)
2
Executive 171E DIR OPRN No 0 2 0 60
2
Executive 014E EX VP/GEN MGR No 1 1 0 60
2
Executive 279A EXEC SECRTY No 1 1 1 60
2
Food & Bevera 265 AST BEV MGR No 1 1 1 60
2 2
Food & Bevera 262 AST CHEF Yes 1 0 1
2
Food & Bevera 416 BAR BACK Yes 4 4 2 60
2
Food & Bevera 415 BARTENDER Yes 14 15 1 60
2
Food & Bevera 165E BEV MGR No 1 1 0 60
2
Food & Bevera 429 BUS - BUFFET Yes 21 22 2 60
Food & Bevera 428 BUS PERSON Yes 16 19 2 40 1(20) or 2(10)
2
Food & Bevera 521 BUTCHER Yes 0 1 2 60
2
Food & Bevera 437 CASHIER-FD Yes 8 7 2 60
2
Food & Bevera 439 COCKTAIL SERV Yes 32 34 2 60
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Food & Bevera 455 DINING RM RUN Yes 9 8 2 40 1(20) or 2(10)
2
Food & Bevera 272 EX KIT STEWARD Yes 0 1 1 60
2
Food & Bevera 164E EXECUTVE CHEF Yes 1 1 0 60
2
Food & Bevera 352 FOD SHFT SUP No 3 3 1 60
2
Food & Bevera 163E FOOD DIR No 1 1 0 60
Food & Bevera 461 FOOD SERVER Yes 39 40 2 40 1(20) or 2(10)
Food & Bevera 353 HOST PERSON Yes 8 8 2 40 1(20) or 2(10)
2
Food & Bevera 478 KITCHN HELP Yes 33 19 2 60
2
Food & Bevera 477 LD KIT HELP Yes 2 2 2 60
2
Food & Bevera 488 LINE COOK Yes 23 19 2 60
2 2
Food & Bevera 203 MAITRE'D HOTEL No 1 0 1
2
Food & Bevera 510 PREP COOK I Yes 3 5 2 60
2
Food & Bevera 509 PREP COOK II Yes 11 12 2 60
2
Food & Bevera 508 PREP COOK III Yes 3 2 2 60

- 18 -
2
Food & Bevera 269 REST OPER MGR No 1 1 1 60
2
Food & Bevera 351E RESTURNT MGR No 1 1 0 60
2
Food & Bevera 539 SNAC BAR ATDN Yes 3 4 2 60
2
Food & Bevera 362 SPC RM CHEF Yes 2 2 1 60
2
Food & Bevera 361 SPC RM HD PER No 0 1 1 60
2
Food & Bevera 541 SPEC BUS PERS Yes 4 1 2 30
2
Food & Bevera 542 SPEC FD SERVR Yes 7 5 2 30
2
Food & Bevera 544 SPEC LINE CK Yes 9 9 2 30
Food & Bevera 425 SPLY RUNNER Yes 8 8 2 30 1(30)
2
Hotel 257 AST EXEC HKSP No 1 1 1 60
Hotel 418 BELL CAPTAIN Yes 1 1 2 40 2(10)
Hotel 419 BELL PERSON Yes 6 6 2 40 2(10)
Hotel 446 CUSTODIAN I Yes 31 29 2 40 2(10)
Hotel 445 CUSTODIAN II Yes 8 9 2 40 2(10)
2
Hotel 256E EXECUT HSKPR No 1 1 0 60
2
Hotel 204 FRNT DESK SUPV No 0 1 1 60
Hotel 464 GUEST RM ATND Yes 35 0 2 40 2(10)
2
Hotel 472 HOTEL CLK I Yes 3 3 1 60
2
Hotel 471 HOTEL CLK II Yes 10 9 1 60
2
Hotel 191E HOTEL MGR No 1 1 0 60
2 2
Hotel 366 LD CUSTODIAN Yes 2 0 2
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Hotel 336 LD CUSTODIAN Yes 0 2 2 40 2(10)
Hotel 489 LINEN RM ATDN Yes 3 3 2 40 2(10)
2
Hotel 268 MGR CUST SVC No 1 1 1 60
Hotel 502 PARKG ATDNT Yes 13 12 1 40 +/or 30 1(20) or 1(30)
2
Hotel 194 PBX MANAGER No 1 1 1 60
2
Hotel 503 PBX OPERATOR No 6 4 1 60
2
Hotel 255 RM RESERV MGR No 1 1 1 60
2
Hotel 529 STATUS BD OPR No 1 1 2 60
2
Hotel 322 TRANSP SUPV No 0 1 1 60
2
MIS 440A COMPUTR OPRTR No 4 4 1 60
2
MIS 304 D P SUPERV No 1 1 1 60
2
Sales & Market 209E ADV & PUB MGR No 0 1 1 60
2 2
Sales & Market 196E DIR AD/PB/PRO No 1 0 0
2
Sales & Market 463 GRP SALE REP No 1 1 1 60

- 19 -
2 2
Sales & Market 339E GRP SALES MGR No 1 0 0
2
Sales & Market 206E PROM/SPECIAL EVENTS MGR No 1 1 0 60
2
Sales & Market 359 PROMOT ASST No 1 0 1 60
2
Sales & Market 512 PROMOTION ATN Yes 7 0 1 60
2
Sales & Market 368 PUBL COORD No 1 0 1 60
2
Sales & Market 090E SALES ACCT EX No 1 0 0 60
2
Sales & Market 178E SALES ACCT EX No 0 1 0 60
2
Sales & Market 207E DIR/MGR PUBL No 0 1 0 60
2
Sales & Market 492 DRCT MAIL CLK No 0 1 1 60
2
Sales & Market 180A MKT OPR ANYST No 0 2 1 60
Security 533 SECRTY OFF/IN Yes 21 0 1 30 2(15)
Security 552 SECRTY OFF/OT Yes 0 20 1 20 or 30 2(20) or 2(15)
2
Security 532 SECURITY DISP Yes 0 2 1 60
2
Security 159E SECURITY MANAGER No 1 1 0 60
2
Security 331 SECURITY SHFT Yes 3 3 1 60
2
Security 548 SURVEIL AGENT No 4 3 1 60
Total 936 878
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 SAM'S TOWN
MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Accounting 400A ACCT CLK IV 4 2 1 60 0
Accounting 303 ACCT CLK SUPV 6 7 1 60 0
Accounting 403 ACCTG CLERK I 4 10 1 60 0
Accounting 402A ACCTG CLK II 16 13 1 60 0
Accounting 401A ACCTG CLK III 11 11 1 60 0
Accounting 167E AST CONTRLR 1 1 0 60 0
Accounting 300 CHIEF ACCT 1 1 1 60 0
Accounting 114A CONF PAYMASTR 1 1 1 60 0
Accounting 166E CONTROLLER 1 1 0 60 0
Accounting 519 RECEIVER 3 3 1 60 0
Accounting 546 STOCK CLERK 8 8 1 60 0
Accounting 550 VND MCH ATN 1 1 1 60 0
Administrative 285 ADMIN CLRK 1 0 1 60 0
Administrative 172E DIR HUM RES 0 1 0 60 0

- 20 -
Administrative 184 EMPL REL MGR 0 1 1 60 0
Administrative 210 EMPLMNT SUPV 0 1 1 60 0
Administrative 568 EMPLMT CLRK 0 1 1 60 0
Administrative 057 EMPLOYEES RELATIONS MGR 1 0 1 60 0
Administrative 306 PURC AGENT 2 2 1 60 0
Administrative 290 RECEPTIONIST 0 1 1 60 0
Administrative 282 SECRETARY 6 6 1 60 0
Administrative 183 TRNG/DEVLP MG 0 1 1 60 0
Casino 406 ADM TERM OPTR 3 3 1 60 0
Casino 281E ASST SLOT MGR 0 1 0 60 0
Casino 314 AST CAG SHFT 3 3 1 60 0
Casino 252E AST CAG/CRED 1 1 0 60 0
Casino 258 ASST COIN MGR 2 2 1 60 0
Casino 366 AST SLT SHFT 0 2 1 60 0
Casino 422 BINGO AGENT 10 13 1 20 2(20)
Casino 190E BINGO SHIFT SUPV/MGR 1 2 0 20 2(20)
Casino 330 BNGO SHFT SUP 2 2 1 20 2(20)
Casino 423 BOARD PERSON 1 0 1 20 2(20)
Casino 470 BRUSH CASHIER 2 0 1 30 2(15)
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Casino 427 BRUSHPERSON 1 2 1 30 2(15)
Casino 313 CAG SHFT SUPV 3 3 1 60 0
Casino 431 CAGE CASHIER 52 61 1 60 0
Casino 157E CAGE/CRED MGR 1 1 0 60 0
Casino 189E CARD RM MGR 1 1 0 60 0
Casino 310E CASINO FLOOR SUPERVISOR 18 17 1 60 0
Casino 153E CASINO MGR 1 1 0 60 0
Casino 156E CASN PIT BOSS 5 5 0 60 0
Casino 155E CASN SHFT MGR 5 5 0 60 0
Casino 555 CHANGE ATTD TRAINER 0 1 1 30 0
Casino 438 CHANGE ATTDT 88 102 1 30 1(30)
Casino 107 COIN RM MAINT 0 1 1 30 1(30)
Casino 195E COIN RM MGR 1 1 1 60 0
Casino 346 COIN RM SUPV 4 0 1 60 0
Casino 433 CRD RM CASHER 0 8 1 30 2(15)

- 21 -
Casino 326 CRD SHFT MGR 4 4 1 60 0
Casino 443 CREDIT CLERK 2 1 1 60 0
Casino 442 CREDIT CLK II 1 0 1 60 0
2
Casino 453 DEALER 21 97 100 1 6(20)
2
Casino 452 DEALER DICE 47 54 1 6(20)
2
Casino 451 DEALER-CRD RM 28 32 1 6(20)
Casino 465 HRD COUNT ATN 14 18 1 30 1(30)
Casino 321 KENO 2ND 3 3 1 40 1(10)
Casino 186E KENO MGR 1 1 0 40 1(10)
Casino 320 KENO SHFT MGR 3 3 1 40 1(10)
Casino 475 KENO WRITER 35 18 1 40 2(10)
Casino 365 MSTR BK CASHIER 3 1 1 60 0
Casino 170 MSTR SLOT TEC 1 0 1 30 1(30)
Casino 513 PROP PLAYER 10 9 1 30 2(15)
Casino 516 R/S CASHIER 4 3 1 30 0
Casino 323 R/S SHFT SUPV 2 2 1 30 0
Casino 517 R/S WRITER/TELLER 10 16 1 30 0
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Casino 158E RACE/SPORTS MGR 1 1 0 30 0
2 2
Casino 291 RUNNER 1 1 1
Casino 371E SLOT CLB MGR 0 1 0 60 0
Casino 375 SLOT CLB SUPV 0 4 1 60 0
Casino 574 SLOT CLUB ATD 0 10 1 60 0
Casino 317 SLOT FLRPRSN 35 30 1 30 1(30)
Casino 316 SLOT HOST 3 3 1 60 0
Casino 169E SLOT MGR 1 1 0 60 0
Casino 283 SLOT RPR MGR 0 1 1 60 0
Casino 315 SLOT SHFT MGR 4 0 1 60 0
Casino 315 SLOT SHFT MGR 0 4 1 30 1(30)
Casino 627 SLOT SVC ATND 0 3 1 30 1(30)
Casino 538 SLOT TECH I 5 4 1 30 1(30)
Casino 537 SLOT TECH II 5 6 1 30 1(30)
Casino 442 SLOT VLT ATTD 0 2 1 30 1(30)
Engineering 160E FACILITY MGR 1 1 0 30 2(15)

- 22 -
Engineering 479 LABORER 1 2 1 30 2(15)
Engineering 491 MAIN ENG HEP 3 5 1 30 2(15)
Engineering 490 MAINT ENGINR 17 18 1 30 2(15)
Engineering 498 OU MNT ATN II 5 4 1 30 2(15)
Engineering 497 OUT MNT FORMN 1 1 1 30 2(15)
Engineering 499 OUTSIDE MAINT ATN I 3 3 1 30 2(15)
Engineering 501 PAINTER 1 1 1 30 2(15)
2 2
Executive 151E ASST GEN MGR 1 1 0
2 2
Executive 152E DIR NGHT OPN 0 1 0
2 2
Executive 014E EX VP/GEN MGR 1 1 0
Executive 279E EXEC SECRTY 1 1 0 60 0
Food & Bevera 262E AST CHEF 1 1 0 40 1(20)
2 2
Food & Bevera 558 BANQ SERVER 0 1 1
Food & Bevera 416 BAR BACK 16 13 1 60 0
Food & Bevera 415 BARTENDER 35 30 1 60 0
Food & Bevera 165E BEV MGR 1 1 0 60 0
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Food & Bevera 355 BEV SHFT SUPV 3 3 1 60 0
Food & Bevera 428 BUS PERSON 36 25 1 40 1(20)
Food & Bevera 437 CASHIER-FD 17 12 1 40 1(20)
Food & Bevera 439 COCKTAIL SERV 73 82 1 60 0
Food & Bevera 447 DANCE INSTRUC 0 1 1 60 0
Food & Bevera 455 DINING RM RUN 0 8 1 40 1(20)
Food & Bevera 454 DISC JOCKEY 1 1 1 60 0
2 2
Food & Bevera 457 DOOR PERSON 1 1 1
Food & Bevera 164E EXECUTIVE CHEF 1 1 0 40 1(20)
Food & Bevera 460 FD OPER ANLYS 1 1 1 40 1(20)
Food & Bevera 352 FOD SHFT SUP 4 6 1 40 1(20)
Food & Bevera 163E FOOD DIR 1 1 0 40 1(20)
Food & Bevera 163E FOOD DIR 1 0 0 60 0
Food & Bevera 461 FOOD SERVER 72 78 1 40 1(20)
Food & Bevera 353 HOST PERSON 11 12 1 40 1(20)
Food & Bevera 478 KITCHN HELP 75 81 1 40 1(20)

- 23 -
Food & Bevera 477 LD KIT HELP 3 3 1 40 1(20)
Food & Bevera 480 LD LINE COOK 3 3 1 40 1(20)
Food & Bevera 488 LINE COOK 22 21 1 40 1(20)
Food & Bevera 510 PREP COOK I 31 27 1 40 1(20)
Food & Bevera 509 PREP COOK II 7 10 1 40 1(20)
Food & Bevera 508 PREP COOK III 4 4 1 40 1(20)
Food & Bevera 269E REST OPER MGR 1 1 0 40 1(20)
Food & Bevera 351 RESTURNT MGR 3 6 1 40 1(20)
Food & Bevera 539 SNAC BAR ATDN 13 11 1 40 1(20)
2 2
Food & Bevera 540 SNACK VENDOR 1 0 1
Food & Bevera 354 SOUS CHEF 8 7 1 40 1(20)
Food & Bevera 362 SPC RM CHEF 1 1 1 40 1(20)
Food & Bevera 541 SPEC BUS PERS 6 12 1 40 1(20)
Food & Bevera 542 SPEC FD SERVR 18 18 1 40 1(20)
Food & Bevera 543 SPEC LD LN CK 1 3 1 40 1(20)
Food & Bevera 544 SPEC LINE CK 0 7 1 40 1(20)
Food & Bevera 547 STOREM ATDN 11 1 1 60 0
Food & Bevera 425 SUPPLY RNR 0 3 1 60 0
Food & Bevera 202 WESTERN DANCE MGR 1 1 1 60 0
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
2 2
Hotel 408 ALTERN ATNDNT 2 2 1
Hotel 257 AST EXEC HSKP 1 1 1 30 2(10)
Hotel 419 BELL PERSON 3 4 1 60 0
Hotel 260 BOWL AST MGR 0 1 1 60 0
Hotel 199E BOWL CNTR DIR/MGR 1 1 0 60 0
Hotel 426 BOWL DESK CLK 5 8 1 60 0
Hotel 432 BOWLING CNT MKT 0 1 1 60 0
Hotel 260 BOWLING MGR 1 0 1 60 0
Hotel 348A BOWLING OFFICE MGR 1 1 1 60 0
Hotel 350 CHIEF MECHNC 1 1 1 60 0
Hotel 446 CUSTODIAN I 87 84 1 30 2(10)
Hotel 445 CUSTODIAN II 4 8 1 30 2(10)
Hotel 256E EXECUT HSKPR 1 1 0 30 2(10)
2 2
Hotel 369 FASHION COORD 1 1 1
Hotel 464 GUEST RM ATND 17 17 1 30 2(10)
Hotel 472 HOTEL CLK I 2 3 1 60 0

- 24 -
Hotel 471 HOTEL CLK II 6 10 1 60 0
Hotel 191E HOTEL MGR 1 1 0 60 0
Hotel 336 LD CUSTODIAN 3 3 1 30 2(10)
2 2
Hotel 486 LEAGUE COORDN 1 2 1
Hotel 489 LINEN RM ATDN 2 2 1 30 2(10)
Hotel 334 LINEN RM SUPV 1 1 1 30 2(10)
Hotel 493 MECHANIC "A" 1 1 1 60 0
Hotel 494 MECHANIC "B" 9 8 1 60 0
Hotel 500 MERCH CNTRL 0 1 1 60 0
Hotel 502 PARKG ATDNT 10 10 1 60 0
Hotel 194E PBX MANAGER 1 1 0 60 0
Hotel 503 PBX OPERATOR 6 7 1 60 0
Hotel 505 PLAYRM ATDNT 2 6 1 60 0
2 2
Hotel 507 POSTAL CLRK 0 1 1
Hotel 349 PRO SHOP MGR 1 1 1 60 0
Hotel 514 PRO SHP ATDNT 1 1 1 60 0
Hotel 255 RM RESERV MGR 1 1 1 60 0
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Hotel 525 RV PARK ATTN 1 3 1 60 0
Hotel 523 RV PARK CLRK 7 8 1 60 0
Hotel 524 RV PARK LD ATTN 1 1 1 60 0
Hotel 193 RV PARK MGR 2 2 1 60 0
Hotel 527 SALES CLERK 8 6 1 60 0
Hotel 526 SALES CLERK/CASHIER 11 11 1 60 0
Hotel 522 SALES/COMISNS 18 20 1 60 0
Hotel 528 SCORE ASSIST 3 2 1 60 0
2 2
Hotel 536 SHUTL BUS DRV 1 1 1
Hotel 344 STOR DEPT MGR 1 1 1 60 0
Hotel 302 STORE FLR MGR 1 2 1 60 0
Hotel 567 STORE LD CSHR 0 4 1 60 0
Hotel 161E STORE MGR 1 1 0 60 0
Hotel 322 TRANS SUPV 1 1 1 60 0

- 25 -
Hotel 573 TRUCKLD CASN 15 14 1 60 0
MIS 440A COMPUTER OPRTR 5 5 1 60 0
MIS 304 D P SUPERV 1 2 1 60 0
MIS 456A DATA ENTR CLK 0 4 1 60 0
MIS 534 SR COMPUTER OP 2 2 1 60 0
Sales & Market 209E ADV/PUB MGR 0 1 0 60 0
Sales & Market 174E DIR MRKTNG 0 1 0 60 0
Sales & Market 180A MKT OPR ANYST 0 1 1 60 0
Sales & Market 338A PU/PRO/AD AST 1 1 1 60 0
Security 261E ASST SECURITY MGR 1 1 0 30 2(15)
Security 552 SECRTY OFF/OT 9 8 1 30 2(15)
Security 532 SECURITY DISP 2 1 1 30 2(15)
Security 159E SECURITY MANAGER 1 1 0 30 2(15)
Security 533 SECURITY OFF/IN 21 23 1 30 2(15)
Security 331 SECURITY SHFT 2 3 1 30 2(15)
Security 548 SURVEIL AGENT 2 2 1 30 2(15)
Total 1,402 1,508
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 STARDUST

MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Accounting 400A ACCT CLK IV No 6 0 1 60 2(15)
Accounting 401A ACCTG CLK II No 31 30 1 60 2(15)
Accounting 403 ACCTG CLRK I No 11 15 1 60 2(15)
Accounting 402A ACCTG CLRK II No 14 15 1 60 2(15)
Accounting 303E ACT CLK SUPV No 5 8 0 60 2(15)
Accounting 167E AST CONTRLR No 3 3 0 60 0
Accounting 166E CONTROLLER No 1 1 0 60 0
Accounting 442 CREDIT CLRK II No 2 0 1 60 2(15)
Accounting 205E F & B CONTROLLER No 1 1 0 60 2(15)
Accounting 104E INTRN CNTL SPC No 0 1 0 60 0
Accounting 301E INVNTRY CNTRL No 1 1 0 60 0
Accounting 519 RECEIVER No 6 6 1 30 2(10)
Accounting 300E SR ACCOUNTANT No 1 1 0 60 2(15)
Accounting 546 STOCK CLRK No 6 0 1 60 0
Accounting 546 STOCK CLRK No 0 4 1 30 2(15)
Accounting 550 VND MCH ATN No 1 3 1 30 2(10)

- 26 -
Administrative 278E ADMIN ASST No 1 0 0 60 0
Administrative 285 ADMIN CLRK No 1 0 1 60 0
Administrative 172E DIR HUM RES No 0 1 0 60 0
Administrative 173E DIR ADMIN No 1 1 0 60 0
Administrative 176 EMP REL/DEV No 0 1 1 60 0
Administrative 057 EMP REL/DEVP MGR No 1 0 1 60 0
Administrative 210 EMPLOYMENT SUPV No 0 1 1 60 0
Administrative 107 HR STAFF AST No 1 0 1 60 0
Administrative 306 PURC AGENT No 3 3 1 60 0
Administrative 290 RECEPTIONIST No 1 0 1 60 0
Administrative 291 RUNNER No 2 2 1 60 2(15)
Administrative 358E SAFETY/LOSS MANAGER No 0 1 0 60 0
Administrative 282 SECRETARY No 7 9 1 60 0
Administrative 305 SR PURCH AGENT No 1 1 1 60 0
Casino 406 ADM TERM OPTR No 7 6 1 45 0
Casino 417 ADMN TRM COOR No 0 1 1 45 0
Casino 154E ASSISTANT CASINO MGR No 1 1 0 60 0
Casino 314 AST CAG SHFT Yes 3 2 1 60,45,30 0,15,(2)15
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Casino 252E AST CAGE/CREDIT No 1 1 0 60 0
2
Casino 258E AST COIN MGR No 0 1 0 End of drop count
Casino 281E AST SLOT MGR No 1 1 0 60 0
Casino 423 BOARD PERSON No 9 8 1 45 0
Casino 420 BOOTH CASHR Yes 11 13 2 40 2(10)
2
Casino 311E BOXPERSON No 20 20 0 7(20)
Casino 404 BRD PERSON CORD No 2 1 1 45 0
Casino 427 BRUSHPERSON Yes 5 7 1 60 0
Casino 313E CAG SHFT SUPV Yes 3 3 0 60,45,30 0,15,(2)15
Casino 431 CAGE CASHIER Yes 43 45 1 60,45,30 0,15,(2)15
Casino 157E CAGE/CRED MGR No 1 1 0 60 0
Casino 189E CARD RM MGR No 1 0 0 60 0
Casino 433 CARD ROOM CASHIER No 4 4 1 60 0
Casino 421 CAROUSEL ATN Yes 15 20 2 40 2(10)
Casino 310E CASINO FLOOR SUPERVISOR No 47 50 0 40 2(10)
Casino 309E CASINO HOST No 2 4 0 60 0
Casino 153E CASINO MGR No 1 1 0 60 0

- 27 -
Casino 312E CASN CUST REP No 5 4 0 60 0
Casino 156E CASN PIT BOSS No 6 6 0 60 0
Casino 155E CASN SHFT MGR No 4 4 0 60 0
Casino 438 CHANGE ATTDT Yes 78 67 2 40 2(10)
Casino 267E CLCTN MGR No 0 1 0 60 0
2
Casino 195E COIN RM MGR No 1 1 0 End of drop count
Casino 326E CRD SHFT MGR No 3 3 0 60 0
Casino 441 CREDIT CLK III No 1 1 1 60,45,30 0,15,2(15)
2
Casino 453 DEALER 21 Yes 223 222 1 7(20)
2
Casino 452 DEALER DICE Yes 54 51 1 7(20)
2
Casino 451 DEALER-CRD RM Yes 67 71 1 7(20)
Casino 370E DIR SLT MRKTG No 1 1 0 60 0
Casino 318 HOSP CENTER SUP No 1 0 1 60 0
2
Casino 465 HRD COUNT ATN No 9 12 1 Taken after drop
Casino 321E KENO 2ND No 2 3 0 60 0
Casino 474 KENO 3RD Yes 2 0 1 60 0
Casino 186E KENO MGR No 1 1 0 60 0
Casino 476 KENO RUNNER Yes 17 13 1 40 2(10)
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Casino 320E KENO SHFT MGR No 3 3 0 60 0
Casino 475 KENO WRITER Yes 26 22 1 40 2(10)
Casino 365 MASTER BANK Yes 0 6 1 60,45,30 0,15,2(15)
Casino 504 PIT CLERK No 3 8 1 45 2(15)
Casino 380E PIT CLK SUPV No 0 1 0 60 0
Casino 513 PROP PLAYER No 2 1 1 60 0
Casino 516 R/S CASHIER Yes 9 10 1 45 0
Casino 325 R/S COMP SUPV No 1 1 1 45 0
Casino 323E R/S SHFT SUPV No 6 9 0 45 0
Casino 517 R/S TELLER Yes 32 36 1 45 0
Casino 518 R/S VERITYPE Yes 2 2 1 45 0
Casino 188E RACE BK MGR No 1 1 0 60 0
Casino 158E RACE/SPORTS MGR No 1 1 0 60 0
Casino 371E SLOT CLB MGR No 5 1 0 60 0

- 28 -
Casino 375E SLOT CLB SUPV No 0 5 0 60 0
Casino 574 SLOT CLUB ATD No 0 8 1 60 0
Casino 317 SLOT FLRPRSN Yes 26 31 1 30 2(10)
Casino 316E SLOT HOST No 3 7 0 60 0
Casino 169E SLOT MGR No 1 1 0 60 0
Casino 315E SLOT SHFT MGR No 4 4 0 30 0
Casino 319 SLOT SHOP SUPV No 1 1 1 30 0
Casino 538 SLOT TECH I Yes 1 2 1 30 2(15)
Casino 537 SLOT TECH II Yes 6 7 1 30 2(15)
Casino 187E SPORTS BK MGR No 1 1 0 60 0
Casino 374E SPORTS INFO COORD No 0 1 0 45 0
Casino 329E TOURNMT DIR No 1 1 0 60 0
Casino 016E VP/CSNO OPRTN No 1 1 0 60 0
Engineering 259E AST FACILITY MGR No 1 1 0 60 0
Engineering 436 CARPENTER Yes 11 14 1 30 2(15)
Engineering 459 ELECTRICIAN Yes 14 13 1 30 2(15)
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Engineering 160E FACILITY MGR No 1 1 0 60 0
Engineering 479 LABORER Yes 7 8 1 30 2(15)
Engineering 491 MAIN ENG HELP Yes 2 2 1 30 2(15)
Engineering 490 MAINT ENGINR Yes 16 22 1 30 2(15)
Engineering 498 OU MNT ATN II Yes 0 5 1 30 2(15)
Engineering 497 OUT MNT FORMN Yes 5 1 1 30 2(15)
Engineering 501 PAINTER Yes 2 4 1 30 2(15)
Engineering 575 TRANS DRIVER Yes 0 3 1 30 2(15)
Engineering 604 UPHOLSTERER Yes 2 1 1 30 2(15)
Executive 151E ASST GEN MGR No 1 1 0 60 0
Executive 014E EX VP/GEN MGR No 1 1 0 60 0
Executive 279E EXEC SECRTY No 3 9 0 60 0
Food & Bevera 262E AST CHEF Yes 1 0 0 60 0
Food & Bevera 413 BAKER Yes 11 11 2 40 2(10)
Food & Bevera 414 BAKER HELPER Yes 6 5 2 40 2(10)

- 29 -
Food & Bevera 416 BAR BACK Yes 16 21 2 40 2(10)
Food & Bevera 415 BARTENDER Yes 32 32 1 40 2(10)
Food & Bevera 165E BEV MGR No 1 0 0 60 0
Food & Bevera 355E BEV SHFT SUPV No 4 0 0 60 0
Food & Bevera 429 BUS - BUFFET Yes 4 4 2 40 2(10)
Food & Bevera 428 BUS PERSON Yes 37 23 2 40 2(10)
Food & Bevera 521 BUTCHER Yes 0 3 2 40 2(10)
Food & Bevera 356 CAPTAIN No 8 9 2 60 0
Food & Bevera 437 CASHIER-FD Yes 25 27 2 40 2(10)
Food & Bevera 439 COCKTAIL SERV Yes 97 76 2 40 2(10)
Food & Bevera 455 DINING RM RUN Yes 24 25 2 40 2(10)
Food & Bevera 272E EX KIT STEWRD Yes 1 1 0 60 0
Food & Bevera 164E EXECUTVE CHEF Yes 2 1 0 60 0
Food & Bevera 162E FD/BEV DIR No 1 1 0 60 0
Food & Bevera 352E FOD SHFT SUP No 5 8 0 40 0
Food & Bevera 461 FOOD SERVER Yes 126 120 2 40 2(10)
Food & Bevera 308E HEAD CASHIER No 1 1 0 60 0
Food & Bevera 353 HOST PERSON Yes 30 31 2 40 2(10)
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Food & Bevera 478 KITCHN HELP Yes 81 87 2 40 2(10)
Food & Bevera 477 LD KIT HELP Yes 4 4 2 40 2(10)
Food & Bevera 488 LINE COOK Yes 52 49 2 40 2(10)
Food & Bevera 203 MAITRE D HOTEL No 1 1 1 60 0
Food & Bevera 263E PASTRY CHEF Yes 1 0 0 60 0
Food & Bevera 510 PREP COOK I Yes 26 17 2 40 2(10)
Food & Bevera 509 PREP COOK II Yes 19 17 2 40 2(10)
Food & Bevera 508 PREP COOK III Yes 3 1 2 40 2(10)
Food & Bevera 269E REST MGR No 2 1 0 40 0
Food & Bevera 351E RESTURNT MGR No 2 5 0 40 0
Food & Bevera 623 RM SRVC BUS Yes 0 4 2 40 2(10)
Food & Bevera 622 RM SRVC SRVR Yes 0 8 2 40 2(10)
Food & Bevera 625 SHWRM SRVR Yes 0 22 2 60 0
Food & Bevera 539 SNAC BAR ATDN Yes 4 6 2 40 2(10)
Food & Bevera 354 SOUS CHEF Yes 4 5 2 40 0
Food & Bevera 362E SPC RM CHEF Yes 3 3 0 40 2(10)
Food & Bevera 361E SPC RM HD PER Yes 2 2 0 40 0

- 30 -
Food & Bevera 541 SPEC BUS PERS Yes 15 13 2 40 2(10)
Food & Bevera 542 SPEC FD SERVR Yes 22 26 2 40 2(10)
Food & Bevera 544 SPEC LINE CK Yes 15 16 2 40 2(10)
Food & Bevera 564 SPLY RUN WHSE Yes 4 4 2 40 2(10)
Food & Bevera 425 SPLY RUNNER No 31 27 2 40 2(10)
Food & Bevera 547 STORERM ATDN No 5 4 1 40 2(10)
Hotel 307E WRHSE SUPRV No 1 1 0 60 0
2
Hotel 408 ALTERNATTN Yes 1 1 2 Break between shows
2
Hotel 343 ANIMAL TRN No 1 1 1 Break between shows
Hotel 280 AST CUST SRVC No 3 4 1 60 0
Hotel 257E AST EXEC HSKP No 2 2 0 60 0
2
Hotel 410 AST HD WARDRB No 1 1 1 Break between shows
Hotel 192E AST HOTEL MGR No 2 3 0 60 0
2
Hotel 412 AST WARDROBE No 0 1 1 Break between shows
Hotel 418 BELL CAPTAIN Yes 3 3 2 40 2(10)
Hotel 419 BELL PERSON Yes 20 22 2 40 2(10)
2
Hotel 430 BUTTON BOOTH No 1 1 1 Break between shows
Hotel 340E COMPANY MGR No 1 1 0 60 0
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Hotel 444 CUE CALLER No 1 1 1 60 0
Hotel 446 CUSTODAN I Yes 85 98 2 40 2(10)
Hotel 445 CUSTODIAN II Yes 42 55 2 40 2(10)
2
Hotel 449 DANCER CONVERED Yes 34 41 1 Break between shows
2
Hotel 448 DANCER NUDE Yes 11 12 1 Break between shows
Hotel 198E DIR HTL OPRTN No 1 0 0 60 0
Hotel 197E DIR LIDO No 1 0 0 60 0
Hotel 256E EXECUT HSKPR No 1 1 0 60 0
Hotel 464 GUEST RM ATND Yes 90 115 2 40 2(10)
Hotel 332 GUEST ROOM SUPERVISOR Yes 12 15 1 60 0
2
Hotel 617 HD AUDIO/VISL No 1 1 1 Break between shows
2
Hotel 530 HD ELEC & SOUND No 1 1 1 Break between shows
2
Hotel 468 HD PROJECTN No 1 1 1 Break between shows
2
Hotel 467 HEAD FLYMAN No 1 1 1 Break between shows
2
Hotel 469 HEAD PROP No 1 1 1 Break betweem shows
Hotel 472 HOTEL CLK I No 16 18 1 45 1(30)

- 31 -
Hotel 471 HOTEL CLK II Yes 24 23 1 45 1(30)
Hotel 191E HOTEL MGR No 1 1 0 60 0
Hotel 337 LD PBX OPERTR No 4 16 1 45 1(30)
Hotel 554E LIDO PRODUCER No 1 1 0 60 0
2
Hotel 487 LINE CAPTAIN Yes 1 0 1 Break between shows
Hotel 489 LINEN RM ATDN Yes 8 8 2 40 2(10)
Hotel 334 LINEN RM SUPV Yes 0 1 2 60 0
2
Hotel 379 MUSICAL PERFORMER No 0 1 1 Break between shows
2
Hotel 378 MUSICIAN No 0 17 1 Break between shows
2
Hotel 377 ORCHESTRA LDR No 0 1 1 Break between shows
2
Hotel 502 PARKG ATDNT Yes 8 8 1 As time permits
Hotel 194E PBX MANAGER No 1 1 0 60 0
Hotel 503 PBX OPERATOR 14 0 1 45 1(30)
Hotel 335 POOL SUP No 1 1 1 60 0
2
Hotel 511 PRIN DANCER Yes 6 11 1 Break between shows
2
Hotel 520 PROJECTIONIST No 5 5 1 Break between shows
Hotel 255E RM RESERV MGR No 1 1 0 60 0
Hotel 525 RV PARK ATN Yes 1 1 1 30 2(10)
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 MEAL
JOB JOB MEAL BREAK OTHER
CLASS CODE DESCRIPTION UNIFORM 1988 1989 CODE1 MINUTES BREAKS (MINUTES)
Hotel 523 RV PARK CLRK Yes 2 2 1 30 2(10)
Hotel 524 RV PARK LD ATN Yes 1 1 1 30 2(10)
Hotel 193 RV PARK MGR No 1 1 1 60 0
Hotel 343E SALES SUPV No 0 1 0 60 0
Hotel 535 SHOWROOM RESV Yes 0 4 1 30 2(10)
Hotel 435 SHOWROOM RESV Yes 4 0 1 30 2(10)
Hotel 341E STAGE MGR No 0 1 0 60 0
2
Hotel 545 STAGEHAND No 12 12 1 Break between shows
Hotel 529 STATUS BD OPR No 2 7 2 40 2(10)
2
Hotel 551 WARDROBE ATDN No 16 14 1 Break between shows
MIS 440A COMPUTR OPRTR No 5 5 1 60 2(15)
MIS 304E D P SUPERV No 1 2 0 60 0
MIS 456 DATA ENTRY CLK No 5 0 1 60 1(15)
Sales & Market 280E ADVERTISING MGR No 1 1 0 60 0
Sales & Market 174E DIR MRKTNG No 1 2 0 60 0

- 32 -
Sales & Market 357E DIRECT MARKTG MANAGER No 0 1 0 60 0
Sales & Market 492 DRCT MAIL CLK Yes 0 1 1 60 1(15)
Sales & Market 339E GRP SALES MGR No 1 0 0 60 0
Sales & Market 109 MKT OP ANALYST No 1 0 1 60 0
Sales & Market 180A MRK OPR ANALST No 0 1 1 60 0
Sales & Market 206E PROMO/SPECIAL EVENTS MGR No 1 1 0 30 2(10)
Sales & Market 512A PROMOTION ATN No 21 14 1 30 2(10)
Sales & Market 207E PUBLICITY DIR No 1 1 0 60 0
Sales & Market 090E SALES ACCT EX No 1 0 0 60 0
Sales & Market 178E SALES ACCT EXEC No 0 1 0 60 0
Security 261E AST CHIEF SECURITY No 0 1 0 60 0
Security 407 LD SEC OFCR No 0 3 1 30 2(15)
Security 532 SECURITY DISP No 2 3 1 60 0
Security 159E SECURITY MANAGER No 1 1 0 60 0
Security 533 SECURITY OFF/IN Yes 62 79 1 60 0
Security 331E SECURITY SHFT No 4 3 0 60 0
Security 548E SURVEIL AGENT No 4 5 0 60 0
Total 2,251 2,406
1
The meal code is as follows: 0 = authorization to eat in the public restaurants on the premises; 1 = entitled
to eat one meal per shift in the Cafeterias; 2 = entitled to eat two meals per shift in the Cafeterias.
2
Not available.
 - 34 -

The right of many of petitioners' employees to receive meals

from petitioners without charge is set forth in numerous labor

agreements; in the case of outside maintenance attendants,

foremen, and laborers at Stardust, these agreements also provide

that petitioners must pay them the cost of a meal in lieu of a

meal.2 In some cases, these agreements allow an employee to

receive two meals in a workday; most of these employees take

advantage of both meals. In the case of dealers, who generally

are entitled to a 20-minute break every hour, petitioners'

practice is to allow the dealers to eat during all of their

breaks, and the dealers tend to take advantage of this practice.

The labor agreements, and the titles of the covered

employees (exclusive of the employees in the category "Food and

Beverage"), are as follows:

COLLECTIVE BARGAINING AGREEMENT between STRIP HOTELS
AND CASINOS and LOCAL JOINT EXECUTIVE BOARD OF LAS
VEGAS, CULINARY WORKERS UNION, LOCAL NO. 226, and
BARTENDERS UNION, LOCAL NO. 165 (culinary workers'
agreement):

Stardust: Carousel Attendant, Change
Attendant, Bell Captain, Bell Person,
Custodian I, Custodian II, Guest Room
Attendant, Guest Room Supervisor, Linen Room
Attendant, Linen Room Supervisor, Status
Board Operator.

Fremont: Carousel Attendant, Change
Attendant, Change Person Trainer, Bell
Captain, Bell Person, Custodian I, Custodian
II, Guest Room Attendant, Lead Custodian,
Linen Room Attendant, Status Board Operator.

2
We are unable to find that these three classifications of
employees do not also receive meals during their shifts. The
record leads us to believe that they do.
 - 35 -

LABOR AGREEMENT[S] between RESORT HOTELS and
PROFESSIONAL, CLERICAL AND MISCELLANEOUS EMPLOYEES,
TEAMSTERS LOCAL UNION NO. 995 (Teamsters' agreements):

Stardust: Receiver, Laborer, Outside
Maintenance Attendant II, Outside Maintenance
Foreman, Parking Attendant, PBX Operator,
Storeroom Attendant, Hotel Clerk I, Hotel
Clerk II, Lead PBX Operator.

Fremont: Hotel Clerk I, Hotel Clerk II,
Parking Attendant, PBX Operator.

CHC (during the 1987 taxable year): Hotel
Clerk I, Hotel Clerk II, Lead Parking
Attendant, Parking Attendant, PBX Operator.

LABOR AGREEMENT between STARDUST HOTEL AND CASINO and
INTERNATIONAL ALLIANCE OF THEATRICAL STAGE EMPLOYEES
AND MOVIE PICTURE MACHINE OPERATORS OF THE UNITED
STATES AND CANADA, LOCAL 720, LAS VEGAS, NEVADA
(THEATRICAL WARDROBE EMPLOYEES) (theatrical workers'
agreement):

Stardust: Alteration Attendant, Assistant
Head Wardrobe, Assistant Wardrobe, Button
Booth, Head Audio/Visual, Head
Electrical/Sound, Head Projection, Head
Flyman, Head Prop, Projectionist, Stagehand,
Wardrobe Attendant, Cue Caller.

LABOR AGREEMENT between [blank space] and INTERNATIONAL
UNION OF OPERATING ENGINEERS, Local No. 501, AFL-CIO
(operating engineers' agreement) and the SLOT MECHANICS
ADDENDUM TO MASTER LABOR AGREEMENT (slot mechanic
workers' agreement):

Stardust: Slot Shop Supervisors, Slot Tech
I, Slot Tech II, Assistant Facility Manager,
Maintenance Engineer Help, Maintenance
Engineer, Maintenance Help.

Fremont: Slot Tech II, Assistant Facility
Manager, Laborer, Maintenance Engineer.

CHC: Assistant Facility Manager, Maintenance
Engineer, Maintenance Engineer Helper.

LABOR AGREEMENT between NEVADA RESORT ASSOCIATION and
UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA
LOCAL UNION NO. 1780, LAS VEGAS, NEVADA (carpenters'
agreement):
 - 36 -

Stardust: Carpenter, Upholster.
Fremont: Carpenter.
LABOR AGREEMENT BETWEEN STARDUST HOTEL and
INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL
UNION # 357, AFL/CIO (electricians' agreement):

Stardust: Electrician.

Fremont: Electrician.

COLLECTIVE BARGAINING AGREEMENT between STARDUST HOTEL
AND CASINO and MUSICIANS UNION OF LAS VEGAS, LOCAL NO.
369 AMERICAN FEDERATION OF MUSICIANS, AFL/CIO
(musicians' agreement):

Stardust: Musical performer, Musician,
Orchestra Leader.

LABOR AGREEMENT between NEVADA RESORT ASSOCIATION and
INTERNATIONAL BROTHERHOOD OF PAINTERS & ALLIED TRADES
LOCAL UNION NO. 159 AFL/CIO (painters' agreement):

Stardust: Painter.

Fremont: Painter.

All of these labor agreements have provisions that address

employee meals. The culinary workers' agreement provides:

14.01. Meals Furnished by Employer. For the
convenience of the Employer, all employees covered by
this Agreement shall be required to take the meals
hereinafter provided for on the premises of the
Employer. Said meals shall be palatable, wholesome and
comparable in quality to those served to customers. A
selection of meal items shall be made available daily,
including at least two (2) meat entrees. The selection
of meals shall be posted in the employees' cafeteria.
Breakfast, including eggs, will be available to all
shifts. Employees shall have a choice of coffee, tea
or milk at each meal, and shall be entitled to a
dessert at each meal. No entree shall be included on
the menu more than two (2) times in a calendar week. A
fish entree shall be included at least once in a
calendar week. The number of such meals shall be set
forth in Section 14.02. Except as provided otherwise
in Section 14.02(a) and (b), the Employer shall allow
each employee an uninterrupted meal period of thirty
(30) minutes on the Employer's time, plus sufficient
time (not to exceed five (5) minutes each way) to go to
and from the eating area.
 - 37 -

14.02. Number of Meals.

(a) For the convenience of the Employer, all
employees, except Bartenders, working full shifts shall
be entitled to two (2) meals per day, one of which
shall be eaten within one (1) hour before commencement
of the shift and the second no sooner than three (3)
and no later than five (5) hours after commencement of
the shift. Bartenders shall be entitled to one (1)
meal to be eaten no sooner than three (3) and no later
than five (5) hours after commencement of the shift.

(b) All employees working six (6) or four (4) hour
shifts shall be entitled to one (1) meal per day.
Employees working six (6) hour shifts shall eat no
sooner than three (3) and no later than five (5) hours
after commencement of the shift; and employees working
four (4) hour shifts shall eat before their shift
begins or after their shift ends.

One of the two Teamsters' agreements provides:

5.01. WORKDAY AND OVERTIME. The normal workday
for regular, full-time employees shall consist of eight
(8) hours including forty-five (45) minutes for a meal
period and two (2) fifteen (15) minute rest periods
during each shift.

* * * * * * *

16.01. MEALS. An employee shall receive one (1)
meal during the course of his shift. The meal will be
scheduled as near to the middle of the shift as is
possible, except for regular part-time employees
working a short shift, who shall be provided with a
prorated meal period after the third (3rd) hour worked.

At the option of the Employer, the employee may be
paid one dollar and fifty cents ($1.50) in lieu
thereof.

Meals served to employees shall be palatable,
wholesome and comparable in quality to those served to
the customers. A selection of meal items shall be made
available daily, including at least two (2) meat entres
[sic]. No entree shall be included on the menu more
than two (2) times in a calendar week. A fish entree
shall be carried at least once in a calendar week.
Breakfast, including eggs, will be made available to
all shifts.
 - 38 -

When relieved from duty, an employee will be
permitted to take assigned lunch and rest periods away
from the immediate work area.

In recognition of the fact that the public
restaurants of the establishments have been provided
for the use of customers and guests * * *, it is agreed
that the Employer retains the right to restrict or
prohibit the use of these facilities by employees.

Employees relieved from duty will be permitted to
leave the premises during their assigned lunch periods;
provided they clock out at the commencement of such
period and clock in at the conclusion thereof.

The other Teamsters' agreement provides:

5.01. WORKDAY. The normal workday for regular
employees shall consist of eight (8) consecutive hours,
including a lunch period. Employees working an eight
(8) hour shift shall receive two (2) fifteen (15)
minute rest periods on the Employer's time--one (1)
prior to their meal period and one (1) following the
meal period. The Employer shall allow each employee an
uninterrupted meal period of thirty (30) minutes on the
Employer's time plus sufficient time (not to exceed
five (5) minutes each way) to go to and from the eating
area.

* * * * * * *

16.01. MEALS. Except as otherwise provided for
herein, an employee shall receive one (1) meal during
the course of an eight (8) hour shift, as near to the
middle of the shift as possible or, at the option of
the Employer, the employee may be paid one dollar and
fifty cents ($1.50) in lieu thereof. Meals served to
employees shall be palatable, wholesome and comparable
in quality to those served to the customers. A
selection of meal items shall be made available daily,
including at least two (2) meat entrees. No entree
shall be included on the menu more than two (2) times
in a calendar week. A fish entree shall be carried at
least once in a calendar week. Breakfast, including
eggs, will be made available to all shifts. All
employees shall be entitled to an uninterrupted meal
period of thirty (30) minutes.

Golf course maintenance personnel, gardeners and
laborers shall be paid a flat allowance of one dollar
and fifty cents ($1.50) per day in lieu of a meal.
 - 39 -

Employees relieved from duty will be permitted to
leave the premises during their assigned lunch periods;
provided they clock out at the commencement of such
period and clock in at the conclusion thereof.

The theatrical workers' agreement provides:

13.01. Employees in the bargaining unit shall not
be required to work more than five (5) hours without
being allowed a meal break of at least one-half (1/2)
hour, which meal period shall not be considered as time
worked and shall not be paid for by the Employer. Time
off between shows shall be deemed to constitute a meal
period for the purpose of this Section.

Meal periods shall not exceed one (1) hour in
duration and may not be granted sooner than two (2)
hours after the employee begins work. Subsequent meal
periods shall be called not less frequently than every
five (5) hours and not more frequently than every three
(3) hours after the completion of the first meal period
of the day. Meal periods may be staggered among
members of the crew. * * *

13.02. Penalties for Failure to Provide. In the
event that an employee is not provided with a meal
period, as provided in Section 13.01, he shall be paid
at the rate of double (2X) the regular, straight-time
hourly rate for the meal period omitted, and if a meal
period is not provided after six (6) consecutive hours
of work, the employee involved shall be paid at the
rate of time and one-half (1 1/2X) his appropriate rate
of pay for all work performed after six (6) consecutive
hours until a meal period is provided. * * *

13.03. Rest Periods. Employees who are called in
to work an eight (8) hour shift shall be granted two
(2) ten (10) minute rest periods. The first such rest
period shall be granted within the first four (4) hours
of work and the second such rest period within the last
four (4) hours worked.

13.04. Continuation of Present Practice. If,
prior to April 1, 1984, the Employer was furnishing
meals to employees free of charge, or at a discount, it
shall continue to do so during the term of this
Agreement.

The operating engineers' agreement provides:

17.01 Meals. An employee shall be entitled to receive
one (1) meal during the course of an eight (8) hour
 - 40 -

shift, as near to the middle of the shift as possible.
If an employee is required to work overtime for two (2)
hours or more beyond his regular shift, or is called
out in an emergency and works for four (4) hours or
more, he shall be entitled to a meal. Meals served to
employees shall be palatable, wholesome and comparable
in quality to those served to the customers. A
selection of meal items shall be made available daily
[including at least two (2) meat entrees]. An Employer
who fails to provide meals as required above shall pay,
as a penalty, the sum of One Dollar and Fifty Cents
($1.50) for each meal he failed to furnish.

The slot mechanic workers' agreement provides:

6.01 Workday and Workweek. (a) The normal workday for
regular employees shall consist of eight (8)
consecutive hours, inclusive of a meal period. * * *
The Employer shall allow each employee an uninterrupted
meal period of thirty (30) minutes on the Employer's
time, plus sufficient time (not to exceed five (5)
minutes each way) to go to and from the eating area.

* * * * * * *

17.01. Meals. An employee shall be entitled to
receive one (1) meal during the course of an eight (8)
hour shift, as near to the middle of the shift as
possible. If an employee is required to work overtime
for two (2) hours or more beyond his regular shift, or
is called out in an emergency and works for four (4)
hours or more, he shall be entitled to a meal. Meals
served to employees shall be palatable, wholesome and
comparable in quality to those served to the customers.
A selection of meal items shall be made available daily
[including at least two (2) meat entrees]. An Employer
who fails to provide meals as required above shall pay,
as a penalty, the sum of One Dollar and Fifty Cents
($1.50) for each such meal he failed to furnish.

The carpenters' agreement provides:

ARTICLE 16
Classification and Wage Rates

* * * * * * *

Note 3: Meals: An employee shall be entitled to
receive one (1) hot meal during the course of an eight
(8) hour shift, as near to the middle of the shift as
 - 41 -

possible. If an employee is required to work overtime
for two (2) hours or more beyond his regular shift, or
is called out in an emergency and works for four (4)
hours or more, he shall be entitled to a meal. Meals
served to employees shall be palatable, wholesome and
comparable in quality to those served to the customers.
A selection of meal items shall be made available daily
(including at least two (2) meat entrees). An Employer
who fails to provide meals as required above shall pay,
as a penalty, the sum of one dollar and fifty cents
($1.50) for each such meal he failed to furnish.

The electricians' agreement provides:

6.01. Work Day and Work Week. (a) Eight (8)
consecutive hours, inclusive of a one-half (1/2) hour
meal period, within any twenty-four (24) hours shall
constitute a work week. * * *

* * * * * * *

17.01. Meals. An employee shall receive one (1)
hot meal during the course of an eight (8) hour shift,
as near to the middle of the shift as possible, or, at
the option of the Employer, the employee may be paid
one dollar and fifty cents ($1.50) in lieu thereof. If
an employee is required to work overtime for two (2)
hours or more beyond his regular shift, or is called
out in an emergency and works four (4) hours or more,
he shall be entitled to a meal. Meals served to
employees shall be palatable, wholesome and comparable
in quality to those served to the customers. A
selection of meal items shall be made available daily
(including at least two (2) meat entrees). No entree
shall be included on the menu more than two (2) times
in a calendar week. A fish entree shall be carried at
least once on a calendar week.

An Employer who fails to furnish employees with
meals, as required, shall be obligated to pay a penalty
of one dollar and fifty cents ($1.50) to the employee
for each such meal he failed to provide.

The musicians' agreement provides:

12.02. Rehearsal Meal Periods. During any
rehearsal called before twelve o'clock (12:00) noon, a
lunch period of forty-five (45) minutes, at no cost to
the Employer, must be allowed during the first three
(3) hours. If such rehearsal continues, a second meal
 - 42 -

period of forty-five (45) minutes, at no cost to the
Employer, shall be provided six (6) hours after the end
of the first meal period. Except in cases of
rehearsals called before twelve o'clock (12:00) noon,
as provided above, it is agreed that a lunch period of
forty-five (45) minutes, at no cost to the Employer,
shall be allowed after six (6) hours of rehearsal.

The painters' agreement provides:

16.03.(a) Meals. An employee shall receive one
(1) hot meal during the course of an eight (8) hour
shift, as near to the middle of the shift as possible.
If an employee is required to work overtime for two (2)
hours or more beyond his regular shift, or is called
out in an emergency and works four (4) hours or more,
he shall be entitled to a meal. Meals served to
employees shall be palatable, wholesome and comparable
in quality to those served to the customers. A
selection of meal items shall be made available daily
(including at least two (2) meat entrees). No entree
shall be included on the menu more than two (2) times
in a calendar week. A fish entree shall be carried at
least once in a calendar week.

An Employer who fails to furnish employees with
meals, as required, shall be obligated to pay a penalty
of one dollar and fifty cents ($1.50) to the employee
for each such meal he failed to provide.

The Properties are open 24 hours a day, 7 days a week, and

petitioners try to have employees available around the clock to

meet customer needs. Petitioners generally assign each employee

to one of the following shifts:

Shift 1 (Graveyard) Begins at or after 10 p.m.
Shift 2 (Day) Begins at or after 6 a.m.
Shift 3 (Swing) Begins at or after 3 p.m.
Shift 4 (Relief) Combines 2 or more shifts per workweek

Employees are assigned to their shifts according to the needs of

a department, and each employee's assignment of shift differs by

department, job classification, and Property. The record does

not disclose which or how many employees are assigned to each
 - 43 -

shift, or the hours per day worked by each or any of the

employees.3

Meal breaks range in length from 30 to 60 minutes, and the

length of an employee's break depends primarily on the Property

where he or she works, as well as his or her job classification.

Each department decides how its employees will take their breaks,

and petitioners stagger the employees' breaks (and shifts) so

that enough employees are working at all times. Some employees

are cross-trained to fill in for employees who are on a break or

otherwise to provide extra help when needed. Petitioners

generally require that employees stay on the premises during

their shifts (including breaks), and, under petitioners' policy,

an employee who leaves during his or her shift, without

authorization, is subject to disciplinary action up to and

including dismissal. No employee was disciplined during the

subject years for leaving the premises during a break. It is

petitioners' stated policy that they may call an employee back to

his or her job from a break in case of necessity. Petitioners do

not typically do so. Typically, in case of necessity, an

employee will postpone his or her break and take the break when

the necessity subsides. Petitioners keep no records on the

employees who have been called back to work from a break.

3
The record discloses only that a majority of the
custodians at the Stardust work an 8-hour shift beginning at
either 12 a.m. or 1 a.m., and that a majority of the guest room
attendants at the Stardust work during the day.
 - 44 -

In case of a fire, bomb threat, or similar crisis,

petitioners' policy requires nonmanagerial employees who are at

their work sites at the time of the crisis to secure their work

areas and leave the building immediately, while, on their way

out, advising patrons of the need to leave the building.

Nonmanagerial employees who are on a break during a crisis are

instructed not to return to their work areas but to leave the

building immediately while, on their way out, advising patrons of

the need to leave the building. Managers are mainly responsible

during a crisis to oversee the evacuation of the building.

Petitioners have not had to evacuate CHC during the period from

1976 to date, and the record does not indicate that any of the

other Properties were evacuated during this same time period.

CHC has had one bomb threat and one hostage situation from 1976

to date.

Some employees wear uniforms while on duty. (The table

lists these employees by job description.) A cocktail waitress,

for example, wears a very short black dress, and a dealer wears a

pair of black slacks and a Hawaiian-style shirt. Each employee's

uniform is specific to the Property at which he or she works, and

the uniform tends to identify the employee as an employee of that

Property. Employees are allowed to wear their uniforms to and

from work, or they may change into their uniforms at the

Properties in a room provided by petitioners; petitioners also

provide their employees with storage space for their clothing.
 - 45 -

Petitioners do not limit an employee's activities when he or she

travels to or from work in uniform. The employees who travel

from work in uniforms typically change their uniforms before

going out on personal business after work, but some uniformed

employees have gone out after work in uniform and eaten at a

competitor's restaurant.

Petitioners make no attempt to account for the actual cost

of the meals that are served at the Cafeterias. In the case of

Stardust, petitioners expense a flat charge per month, regardless

of the number of meals served, based on an estimate of food costs

that was made before the subject years. For the other

Properties, petitioners multiply a fixed amount (ranging from

$1.75 to $2) by the number of full-time employees on the rolls of

each department in each month. In accordance with this expending

policy, petitioners ascertained that their direct costs for the

Cafeterias for the 1987 and 1988 taxable years were as follows:

1987 1988

CHC $459,205 $616,483
Fremont 372,705 388,546
Sam's Town 741,366 811,628
Stardust 1,215,638 2,030,010
Total 2,788,914 3,846,667

Petitioners deducted all of these costs, with the exception of

the following amounts for 1987:

CHC $68,044
Fremont 45,781
Sam's Town 98,012
Stardust 145,978
Total 357,815
 - 46 -

Respondent determined (and reflected in the notices of

deficiency) that petitioners could not deduct the following

amounts on account of section 274(n):

1987 1988

CHC $23,797 $102,027
Fremont 28,760 77,709
Sam's Town 59,651 171,446
Stardust 97,150 406,002
Total 209,358 757,184

In its petition, CHC alleges that it did not deduct 20 percent of

the cost of the meals for its 1987 taxable year, and that it is

entitled to do so.

OPINION

We must decide whether the meals are a de minimis fringe

benefit for purposes of section 274(n)(2)(B).4 The meals are a

4
Sec. 274(n), which was added to the Code by sec. 142(b) of
the Tax Reform Act of 1986 (TRA), Pub. L. 99-514, 100 Stat. 2085,
2118, provides in relevant part:

(1) In general.--The amount allowable as a
deduction under this chapter for--

(A) any expense for food or beverages, and

* * * * * * *

shall not exceed 80 percent [sec. 13,209(a) of the
Omnibus Budget Reconciliation Act of 1993, Pub. L.
103-66, 107 Stat. 312, 424-425, changed this amount to
50 percent for taxable years beginning after Dec. 31,
1993] of the amount of such expense or item which would
(but for this paragraph) be allowable as a deduction
under this chapter.

(2) Exceptions.--Paragraph (1) shall not apply to
(continued...)
 - 47 -

de minimis fringe benefit if the meals meet the requirements of

section 132(e)(2),5 which, in turn, requires that the meals meet

the five-prong test (the Boyd test) set forth by the Court in

Boyd Gaming Corp. v. Commissioner, 106 T.C. at 348. The outcome

turns on whether petitioners furnished meals to each of

substantially all of their employees for a substantial

noncompensatory business reason within the meaning of section 119

and the regulations thereunder.

We set forth our analysis as follows. First, we analyze the

Boyd test and the general principles of law that relate thereto.

Second, we analyze petitioners' reasons for furnishing the meals

4
(...continued)
any expense if--

* * * * * * *

(B) in the case of an expense for food
or beverages, such expense is excludable from
the gross income of the recipient under
section 132 by reason of subsection (e)
thereof (relating to de minimis fringes),

5
Sec. 132(e)(2) provides:

(2) Treatment of certain eating facilities.--The
operation by an employer of any eating facility for
employees shall be treated as a de minimis fringe if--

(A) such facility is located on or near
the business premises of the employer, and

(B) revenue derived from such facility
normally equals or exceeds the direct
operating costs of such facility. * * *
 - 48 -

to their employees. Third, we analyze whether petitioners

furnished the meals at each of the Properties to each of

substantially all of their employees at the Property for the

convenience of the employer. In other words, with respect to

each year, we look at each employee and determine whether section

119 allows him or her to exclude the value of the meals from

gross income, and we then determine whether the number of

employees at each Property who may exclude their meals comprises

substantially all of the employees at that Property. For

purposes of this litigation, the parties have stipulated whether

section 119 excludes the meals of employees in certain job

descriptions. Respondent has conceded that the meals received by

employees in the following job descriptions are excludable under

section 119:

CHC

Casino: Dealer Dice, Dealer 21

Engineering: Maintenance Engineer, Maintenance
Engineer Helper

Food and Beverage: Food and Beverage Director,
Executive Chef, Beverage Manager, Assistant Food
Director, Assistant Chef, Restaurant Manager, Food
Shift Supervisor, Host Person, Sous Chef, Kitchen
Runner, Bus Person, Cashier--Food, Dining Room Runner,
Food Server, Lead Kitchen Help, Kitchen Help, Lead Line
Cook, Line Cook, Prep Cook III, Prep Cook II, Prep Cook
I, Snack Bar Attendant, Special Bus Person, Special
Food Server, Special Lead Line Cook, Special Line Cook,
Banquet Server

MIS: Computer Operator
 - 49 -

Security: Security Manager, Assistant Security
Manager, Security Shift, Security Dispatcher, Security
Officer/In, Surveillance Agent, Security Officer/Out

Fremont

Casino: Dealer Dice, Dealer 21, Dealer-Card Room

Engineering: Maintenance Engineer

Food and Beverage: Assistant Beverage Manager,
Assistant Chef, Beverage Manager, Bus-Buffet, Bus
Person, Butcher, Cashier--Food, Dining Room Runner,
Executive Kitchen Steward, Executive Chef, Food Shift
Supervisor, Food Director, Food Server, Host Person,
Kitchen Help, Lead Kitchen Help, Line Cook, Maitre' D
Hotel, Prep Cook I, Prep Cook II, Prep Cook III,
Restaurant Operating Manager, Restaurant Manager, Snack
Bar Attendant, Special Room Chef, Special Room Hand
Person, Special Bus Person, Special Food Server,
Special Line Cook, Specialty Runner

MIS: Computer Operator

Security: Security Officer/In, Security
Officer/Out, Security Dispatcher, Security Manager,
Security Shift, Surveillance Agent

Sam's Town

Casino: Dealer 21, Dealer Dice, Dealer--Card Room

Engineering: Maintenance Engineer, Maintenance
Engineer Helper

Food and Beverage: Assistant Chef, Banquet
Server, Beverage Manager, Beverage Shift Supervisor,
Bus Person, Cashier--Food, Dance Instructor, Dining
Room Runner, Disc Jockey, Door Person, Executive Chef,
Food Operator Analysis, Food Shift Supervisor, Food
Director, Food Server, Host Person, Kitchen Help, Lead
Kitchen Help, Lead Line Cook, Line Cook, Prep Cook I,
Prep Cook II, Prep Cook III, Restaurant Manager, Snack
Bar Attendant, Snack Vendor, Sous Chef, Special Room
Chef, Special Bus Person, Special Food Server, Special
Lead Line Cook, Special Line Cook, Store Attendant,
Supply Runner, Western Dance Manager

MIS: Computer Operator
 - 50 -

Security: Assistant Security Manager, Security
Officer/Out, Security Dispatcher, Security Manager,
Security Officer/In, Security Shift, Surveillance Agent

Stardust

Casino: Dealer 21, Dealer Dice, Dealer--Card Room

Engineering: Maintenance Engineer Helper,
Maintenance Engineer

Food and Beverage: Assistant Chef, Baker, Baker
Helper, Beverage Manager, Beverage Shift Supervisor,
Bus-Buffet, Bus Person, Butcher, Captain, Cashier--
Food, Dining Room Runner, Executive Kitchen Chef,
Executive Chef, Food/Beverage Director, Food Shift
Supervisor, Food Server, Head Cashier, Host Person,
Kitchen Help, Lead Kitchen Help, Line Cook, Maitre' D
Hotel, Pastry Chef, Prep Cook I, Prep Cook II, Prep
Cook III, Restaurant Operations Manager, Restaurant
Manager, Room Service Bus, Room Service Server,
Showroom Server, Snack Bar Attendant, Sous Chef,
Special Room Chef, Special Room Hand Person, Special
Bus Person, Special Food Server, Special Line Cook,
Supply Runner Warehouse, Supply Runner, Storeroom
Attendant, Warehouse Supervisor

MIS: Computer Operator

Security: Assistant Chief Security, Lead Security
Officer, Security Dispatcher, Security Manager,
Security Officer/In, Security Shift, Surveillance Agent

Petitioners have conceded that the meals received by

employees in the following job descriptions are not excludable

under section 119, unless the employee works the graveyard shift

or unless section 1.119-1(a)(ii)(e), Income Tax Regs., applies:

CHC

Accounting: Controller, Assistant Controller,
Payroll Supervisor, Chief Accountant, Accounting Clerk
Supervisor, Accounting Clerk IV, Accounting Clerk III,
Accounting Clerk II
 - 51 -

Administrative: Employee Relations Development
Manager, Human Resources Specialist, Director of Human
Resources, Employee Relations Manager, Office Manager,
Secretary, Administrative Clerk, Purchasing Agent,

Casino: Director of Gaming School, Gaming School
Instructor

Sales & Marketing: Director of Sales, Director of
Advertising/Public/Promotions, Advertising and
Publication Manager, Publicity/Promotions/Advertising
Assistant, Group Sales Manager, Group Sales
Representative, Promotions Attendant

Fremont

Accounting: Accounting Clerk IV, Accounting Clerk
III, Accounting Clerk II, Accounting Clerk I,
Accounting Clerk V, Assistant Controller, Controller,
Inventory Control, Payroll Supervisor, Senior
Accountant

Administrative: Administrative Clerk, Director
Internal Operations/Human Resources, Employee
Relations/Development, Employee Relations Manager,
Employment Clerk, Human Resource Specialist, Purchasing
Agent, Receptionist, Secretary

Sales & Marketing: Advertising and Publication
Manager, Director Advertising/Publicity/Promotions,
Group Sales Representative, Group Sales Manager,
Promotions/Special Events Manager, Promotions
Assistant, Promotions Attendant, Public Coordinator,
Sales Account Executive, Director/Manager Publication,
Direct Mail Clerk, Market Operations Analyst

Sam's Town

Accounting: Accounting Clerk IV, Accounting Clerk
Supervisor, Accounting Clerk I, Accounting Clerk II,
Accounting Clerk III, Assistant Controller, Chief
Accountant, Conference Paymaster, Controller, Vending
Machine Attendant

Administrative: Administrative Clerk, Director of
Human Resources, Employment Supervisor, Employment
Clerk, Purchasing Agent, Receptionist, Secretary
 - 52 -

Hotel: Sales Clerk, Sales Clerk/Cashier,
Sales/Commissions, Store Lead Cashier

Sales & Marketing: Marketing Director, Marketing
Operation Analyst, Publicity/Promotions/Advertising
Assistant

Stardust

Accounting: Accounting Clerk IV, Accounting Clerk
III, Accounting Clerk II, Accounting Clerk I,
Accounting Clerk Supervisor, Assistant Controller,
Controller, Credit Clerk II, Food & Beverage
Comptroller, Internal Control Specialist, Inventory
Control, Senior Accountant, Vending Machine Attendant

Administrative: Administrative Assistant,
Administrative Clerk, Director Human Resources,
Director Administration, Employee
Relations/Development, Employee Relations/Development
Manager, Employment Supervisor, Human Resource Staff
Assistant, Purchasing Agent, Receptionist, Runner,
Safety Loss Manager, Secretary, Senior Purchasing Agent

Sales & Marketing: Advertising Manager, Director
Marketing, Director Marketing Manager, Direct Mail
Clerk, Group Sales Manager, Market Operations Analyst,
Market Operator Analyst, Promotions/Special Events
Manager, Promotions Attendant, Promotions Director,
Sales Account Ex, Sales Account Executive

Turning first to the Boyd test, which is applied separately

to each eating facility at issue, we find that employee meals

which are provided by an employer on a nondiscriminatory basis

are a de minimis fringe benefit under section 132(e) if: (1) The

eating facility is owned or leased by the employer, (2) the

facility is operated by the employer, (3) the facility is located

on or near the business premises of the employer, (4) the meals

furnished at the facility are provided during, or immediately

before or after, the employee’s workday, and (5) the annual
 - 53 -

revenue derived from the facility equals or exceeds the direct

operating costs of the facility (the revenue/operating cost

test). Boyd Gaming Corp. v. Commissioner, 106 T.C. at 348; see

also sec. 132(e)(2); sec. 1.132-7(a), Income Tax Regs. The

parties focus mainly on the revenue/operating cost test. So do

we. For purposes of the revenue/operating cost test, an employer

may disregard the cost and revenue for each employee meal that

the employer determines reasonably is excludable from the

recipient's gross income under section 119. Sec. 1.132-7(a)(2),

Income Tax Regs.6 Section 119(a) excludes from the recipient's

gross income "the value of any meals * * * furnished to him, his

spouse, or any of his dependents by or on behalf of his employer

for the convenience of the employer, but only if * * * the meals

are furnished on the business premises of the employer". Sec.

119(a).

The parties agree that section 119 allows some, but not all,

of petitioners' employees to exclude from gross income the value

of meals received from their employers. The parties dispute

whether section 119 allows each of substantially all of the

employees to exclude the value of the meals from gross income.

6
Sec. 1.132-7(a)(2), Income Tax Regs., provides:

If an employer can reasonably determine the number of
meals that are excludable from income by the recipient
employees under section 119, the employer may, in
determining whether the * * * [revenue/operating cost
test] is satisfied, disregard all costs and revenues
attributable to such meals provided to such employees.
 - 54 -

If section 119 provides for such an allowance, section

1.119-1(a)(2)(ii)(e), Income Tax Regs., allows petitioners to

deduct 100 percent of the costs incurred to provide the meals.7

Boyd Gaming Corp v. Commissioner, 106 T.C. 343 (1996); see also

sec. 274(n)(2)(B); sec. 1.132-7(a)(2), Income Tax Regs. If

section 119 does not provide for such an allowance, petitioners'

deductions for the meals are limited by section 274(n)(1) to 80

percent of the cost of the meals.

Petitioners argue that section 119 allows each of

substantially all of the employees to exclude the value of the

meals from gross income. According to petitioners, they had

substantial noncompensatory business reasons for providing meals

to each of substantially all of their employees, and petitioners

determined reasonably that the meals were excludable from each

employee's gross income under section 119. Respondent counters

that petitioners cannot determine the number of meals excludable

from gross income under section 119, which is a prerequisite to

the application of section 1.132-7(a)(2), Income Tax Regs.,

because petitioners failed to keep the required documentation to

7
Sec. 1.119-1(a)(2)(ii)(e), Income Tax Regs., provides:

If the employer furnishes meals to employees at a place
of business and the reason for furnishing the meals to
each of substantially all of the employees who are
furnished the meals is a substantial noncompensatory
business reason of the employer, the meals furnished to
each other employee will also be regarded as furnished
for a substantial noncompensatory business reason of
the employer.
 - 55 -

establish, among other things, the number of meals eaten, by whom

the meals were eaten, or at what time the meals were eaten.

Respondent also argues that substantially all of petitioners'

employees did not receive the meals for a substantial

noncompensatory business reason because less than 90 percent of

the employees qualified for the section 119 exclusion.

Respondent relies on section 1.119-1(f), Example (9), Income Tax

Regs., in asserting that the "substantially all" test of section

1.119-1(a)(2)(e), Income Tax Regs., requires that at least

90 percent of the meals received by the employees be excludable

under section 119. Section 1.119-1(f), Example (9), Income Tax

Regs., sets forth an example under which 91.3 percent of the

taxpayer's employees is "substantially all" of the taxpayer's

employees within the meaning of the regulations. This example

states:

A hospital maintains a cafeteria on its premises where
all of its 230 employees may obtain a meal during their
working hours. No charge is made for these meals. The
hospital furnishes such meals in order to have each of
210 of the employees available for any emergencies that
may occur, and it is shown that each such employee is
at times called upon to perform services during his
meal period. Although the hospital does not require
such employees to remain on the premises during meal
periods, they rarely leave the hospital during their
meal period. Since the hospital furnishes meals to
each of substantially all of its employees in order to
have each of them available for emergency call during
his meal period, all of the hospital employees who
obtain their meals in the hospital cafeteria may
exclude from their gross income the value of such
meals.
 - 56 -

We agree with respondent that section 119 does not allow

each of substantially all of petitioners' employees to exclude

the value of the meals from gross income.8 We start our analysis

with section 61(a). Section 61(a) includes in gross income all

income from whatever source derived, absent a contrary provision

in subtitle A of the Code (sections 1 to 1563). The definition

of gross income under section 61(a) broadly encompasses any

accession to a taxpayer's wealth. United States v. Burke,

504 U.S. 229 (1992); Commissioner v. Kowalski, 434 U.S. 77, 82-83

(1977); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431

(1955); Helvering v. Clifford, 309 U.S. 331, 334 (1940).

Exclusions from gross income, by contrast, are matters of

legislative grace and are construed narrowly to maximize the

taxation of any accession to wealth. United States v. Burke,

supra at 248 (Souter, J., concurring in the judgment); United

States v. Centennial Sav. Bank FSB, 499 U.S. 573, 583 (1991);

8
At the outset, we note that petitioners misinterpret a
sentence in Boyd Gaming Corp. v. Commissioner, 106 T.C. 343
(1996), in asserting that their "reasonable belief" that the full
cost of the meals are excludable from gross income under sec. 119
is enough to come within sec. 1.132-7(a)(2), Income Tax Regs.
The sentence states that "petitioners may deduct the meals' full
cost if they reasonably determine that the meals are excludable
from their employees' incomes under section 119." Id. at 353.
Taken in context, this sentence means that petitioners may deduct
the full cost of the meals if 100 percent of the meals are
excludable from gross income. Respondent also misconstrues the
breadth of this sentence. Contrary to respondent's assertion,
petitioners do not have to prove the exact number of meals
subject to sec. 119 if that section excludes 100 percent of the
meals.
 - 57 -

Commissioner v. Jacobson, 336 U.S. 28, 49 (1949); Robinson v.

Commissioner, 102 T.C. 116, 124-125 (1994), affd. in part, revd.

in part on another issue, and remanded 70 F.3d 34 (5th Cir.

1995). Given the broad sweep of inclusions vis-a-vis the narrow

construction of exclusions, it naturally follows that an

accession to wealth is prima facie includable in gross income

under section 61(a) unless an exclusion in sections 1 through

1563 clearly directs otherwise. United States v. Burke, supra at

248 (Souter, J., concurring in the judgment); United States v.

Centennial Sav. Bank FSB, supra at 1519; Commissioner v.

Jacobson, supra at 49; Robinson v. Commissioner, supra at 125;

see Commissioner v. Kowalski, supra at 83.

Petitioners argue that substantially all of the meals are

excludable from the gross income of the recipient employees under

the exclusion of section 119. From the text of section 119, we

understand that the gross income of an employee who meets a

two-prong test does not include the value of a meal received from

his or her employer. Under the first prong, the meal must be

furnished by the employer on its business premises. Under the

second prong, the meal must be furnished to the employee for the

convenience of the employer. See also sec. 1.119-1(a)(1), Income

Tax Regs. Since the parties do not dispute the first prong, we

limit our focus to the second prong, deciding only the question

of whether each employer at issue provided each meal to each of

its employees for the convenience of the employer.
 - 58 -

Whether an employer provides a meal to an employee for the

employer's convenience rests primarily on whether the meal is

provided to the employee for a substantial noncompensatory

business reason of the employer. See sec. 1.119-1(a)(2)(i) and

(ii)(e), Income Tax Regs. Such a determination is factual, Jacob

v. United States, 493 F.2d 1294, 1297 (3d Cir. 1974); Olkjer v.

Commissioner, 32 T.C. 464, 468 (1959); sec. 1.119-1(a)(1), Income

Tax Regs., and petitioners bear the burden of proof, Rule 142(a);

Welch v. Helvering, 290 U.S. 111, 115 (1933); Caratan v.

Commissioner, 442 F.2d 606, 608 (9th Cir. 1971), revg. 52 T.C.

960 (1969); American Pipe & Steel Corp. v. Commissioner, 243 F.2d

125, 126-127 (9th Cir. 1957), affg. 25 T.C. 351 (1955); Olkjer v.

Commissioner, supra at 468. A substantial noncompensatory

business reason requires a business nexus under which the

"employee must accept * * * [the] meals * * * in order properly

to perform his duties." Commissioner v. Kowalski, supra at 93

(quoting S. Rept. 1622, 83d Cong., 2d Sess. 190 (1954)); see also

Van Rosen v. Commissioner, 17 T.C. 834, 838 (1951). That the

employer may characterize the meal as noncompensatory, or that

the employer intends that the employee receive the meal without

tax consequences, is of no relevance to the application of

section 119. Commissioner v. Kowalski, supra at 88-95. The same

is true with respect to whether the employee could perform his or

her job absent the meal. A meal need not be indispensable to an
 - 59 -

employee's duties to be excludable under section 119. See

Caratan v. Commissioner, supra at 609.

We believe that certain factors are helpful in determining

whether an employer provides a free meal to an employee for a

substantial noncompensatory business reason of the employer. The

presence of a substantial noncompensatory business reason

establishes that a meal is provided for the convenience of the

employer and makes unimportant whether the employer also provides

the meal to the employee as a source of additional compensation.

We use the following factors to aid us in our analysis:

(1) Whether the employer furnishes a meal to an employee before,

during, or after the employee's work period, (2) whether the

employer requires an employee to live on the employer's business

premises as a condition of employment, (3) whether the employer

furnishes a meal to an employee during the employee's working

hours so that he or she is available to respond to emergencies of

the employer that arise during the meal period, (4) whether the

employer furnishes a meal to an employee during the employee's

working hours because the employer's business demands that the

employee's meal period be short and the employee cannot be

expected to eat elsewhere in such a short period of time,

(5) whether the employer furnishes a meal to an employee during

the employee's working hours because the employee cannot

otherwise secure a proper meal within a reasonable meal period,

(6) whether the employer furnishes a meal to a food service
 - 60 -

employee (e.g., a restaurant employee) for a meal period during

which the employee works, (7) whether the employer furnishes a

meal to an employee to promote the employee's morale or goodwill,

(8) whether the employer furnishes a meal to an employee to

attract prospective employees, and (9) whether the employer

furnishes a meal to an employee under an employment contract or a

statute that characterizes the meal as compensation. Some of

these factors are dispositive, in and of themselves, and the

weight given to each factor rests on the factor involved. In

analyzing each factor, little weight is given to the unsupported

declarations of witnesses, sec. 1.119-1(a)(2), Income Tax Regs.;

see also Incorporated Trustees v. United States, 777 F.2d 1552,

1555 n.10 (Fed. Cir. 1985), and more weight is given to facts

which are supported by the record as a whole. Section 119 is

applied on a meal-by-meal basis.

1. Timing of Meal

A meal must be furnished to an employee on a working day in

order to fall within section 119. Sec. 1.119-1(a)(2), Income Tax

Regs.; see also Bob Jones Univ. v. United States, 229 Ct. Cl.

340, 670 F.2d 167, 178 (1982). The mere fact that a meal is

furnished to an employee on a working day, however, does not mean

that the meal meets the requirements of section 119. With two

exceptions, a meal that is furnished on a working day is outside

section 119 if the meal is furnished before or after the

employee's working hours. Sec. 1.119-1(a)(2), Income Tax Regs.;

see also Bob Jones Univ. v. United States, supra at 178. First,
 - 61 -

the fact that a food service employee receives a meal for each

meal period during which he or she works will not disqualify a

meal from section 119, as long as the meal is eaten by the

employee on the working day. Sec. 1.119-1(a)(2)(i) and (ii)(d),

Income Tax Regs. Second, the fact that a non-food-service

employee receives a meal immediately before or immediately after

his or her working hours will not remove the meal from section

119 if the employee's duties prevent him or her from eating the

meal during working hours. Sec. 1.119-1(a)(2)(i) and (ii)(f),

Income Tax Regs. In the case of both exceptions, however, the

meal must be furnished to the employee for a meal period during

which he or she works. A meal that is furnished to an employee

for a meal period other than one during which he or she works is

outside section 119. A meal furnished to an employee for a meal

period during which he or she does not work is furnished solely

as compensation; the meal is not needed to allow the employee to

perform his or her duties. See Commissioner v. Kowalski, 434

U.S. at 93.

Some of the employees in question receive at least two meals

during an 8-hour shift. One of these meals is eaten up to 1 hour

before the shift starts, and the second meal is eaten from 3 to 5

hours after the shift begins. The job descriptions of these

employees are as follows:

Fremont

Casino: Carousel Attendant, Change Attendant

Food & Beverage: Barback, Cocktail Server
 - 62 -

Hotel: Bell Captain, Bell Person, Custodian I,
Custodian II, Guest Room Attendant, Lead Custodian,
Linen Room Attendant, Status Board Operator

Stardust

Casino: Booth Cashier, Carousel Attendant, Change
Attendant

Food & Beverage: Barback, Cocktail Server

Hotel: Alteration Attendant, Bell Captain, Bell
Person, Custodian I, Custodian II, Guest Room
Attendant, Linen Room Attendant, Linen Room Supervisor,
Status Board Operator

The first meals are outside the reach of section 119. These

meals are not necessary to allow these employees to perform their

jobs properly.9 The regulations extend section 119 to a case

where a meal is eaten "immediately before" or "immediately after"

the start of a shift if the employee's duties prevent him or her

from eating the meal during working hours. See sec. 1.119-

1(a)(2)(i) and (ii)(f), Income Tax Regs. In other cases, except

those that apply to food service employees, a meal eaten before

the start of a shift ordinarily does not qualify for exclusion

under section 119. Thus, despite the careful wording in the

culinary workers' agreement that the meals are "For the

convenience of the employer", wording which we decline to accept

as dispositive, we conclude that the first meals are provided

purely as compensation and not for the convenience of the

9
Although most of these employees are covered by the
culinary workers' agreement, none of these employees is a
"restaurant employee or other food service employee" within the
meaning of sec. 1.119-1(a)(2)(ii)(d), Income Tax Regs. See infra
pp. 73-74, for our discussion on the inapplicability of this
language to the barbacks and cocktail servers.
 - 63 -

employer. In so concluding, we decline petitioners' invitation

to treat all of these employees as "food service employees"

simply because they are covered by the culinary workers'

agreement.

Section 119 also does not reach any meal that is eaten by

petitioners' employees on a nonworking day or by persons who do

not work for petitioners. Although petitioners' policy is to

preclude employees from eating meals in the Cafeterias on days

off and to preclude nonemployees from eating in the Cafeterias at

all, petitioners do not actively police or monitor this policy.

We are unpersuaded that petitioners' policy on this subject is

adhered to by the employees. We find in the record that

petitioners' employees have access to the Cafeterias on their

days off and that petitioners do not document the receipt of

employee meals in the Cafeterias or the receipt of meals in the

public restaurants by the employees who are allowed to eat there

without charge.10 We also find that nonemployees may easily

enter the Cafeterias with employees, and that petitioners' lack

of documentation on the meals similarly precludes us from finding

that these nonemployees do not eat meals in the Cafeterias.

Petitioners elicited testimony from Mr. Thompson to the

effect that employees never ate two meals. Mr. Thompson stated

that he had "general knowledge" that these employees generally

10
Contrary to the testimony of petitioners' management,
we find it hard to believe that an employee would question the
number of times that a manager ate in the Cafeterias or public
restaurants on a given day.
 - 64 -

did not eat two meals because: (1) He ate twice a day in the

Cafeteria on his premises, seeing everyone who ate there, and

(2) petitioners had used a punch card system in prior years to

monitor the employees' receipt of meals, and these cards seldom

had two punches. We find this testimony unpersuasive and do not

rely on it. See Ruark v. Commissioner, 449 F.2d 311, 312 (9th

Cir. 1971), affg. per curiam T.C. Memo. 1969-48; Clark v.

Commissioner, 266 F.2d 698, 708-709 (9th Cir. 1959), affg. in

part and remanding T.C. Memo. 1957-129; Tokarski v. Commissioner,

87 T.C. 74, 77 (1986). The punch card system preceded the

subject years, and Mr. Thompson's testimony is contradicted

directly by the testimony of Messrs. Miner and Fraser. Mr. Miner

testified that his firsthand experience was that most of the

employees who were entitled to two meals ate both meals. Mr.

Fraser testified that petitioners had experienced problems with

employees taking unauthorized meals. We also do not see how Mr.

Thompson's mere presence in the Cafeteria for 2 hours at the most

could allow him to monitor effectively the number of meals eaten

there by each of the employees. In addition, Mr. Thompson

admitted at trial that he ate two meals a day in the Cafeterias

throughout the subject years, yet his job classification afforded

him only one meal.

With respect to the employees mentioned above who ate two

meals a day, we hold that the first meals are not excludable

under section 119.
 - 65 -

Nor does section 119 reach two meals that are eaten by a

non-food-service employee during one 8-hour shift. In the case

at hand, however, employees are allowed to enter the Cafeterias

freely and inconspicuously during their shifts. Which employees

eat more than one meal during their shifts we do not know. We do

know, however, that employees have been disciplined, suspended,

and/or dismissed for violating petitioners' policy on the

Cafeterias. We also know that petitioners construe the word

"meal" broadly to reach almost any food that is eaten by an

employee during all breaks in a shift. With such a broad

interpretation we do not agree. We construe the word "meal" to

mean "The food served and eaten in one sitting", a definition

which has existed since the 13th century. Webster's II New

Riverside University Dictionary 735 (1994). Thus, an employee

who eats a separate course during each of his or her three breaks

is eating three meals, rather than the one that petitioners

allege. Accordingly, two of these meals do not qualify for

exclusion under section 119.

2. Required To Live on Business Premises

A meal furnished without charge to an employee required to

live on the employer's business premises as a condition of

employment is within section 119 if the meal is furnished on the

business premises. Sec. 1.119-1(a)(2), Income Tax Regs.

The record does not disclose that any of petitioners'

employees live on the Properties. Accordingly, we do not analyze

this factor.
 - 66 -

3. Available for Emergencies

An employer furnishes a meal to an employee for a

substantial noncompensatory business reason if the employer

requires that the employee be available during meal periods to

respond to emergencies. Sec. 1.119-1(a)(2)(ii)(a), Income Tax

Regs. Critical to this factor is that: (1) Emergencies have

occurred in the employer's business during the employee's meal

period which have required the employer to call the employee back

to his or her job during the period or (2) it is reasonable for

the employer to expect that emergencies will occur in its

business during the employee's meal period which will require the

employer to call the employee back to his or her job during the

period in order to respond to the emergency. Sec.

1.119-1(a)(2)(ii)(a), Income Tax Regs.; see also Jacob v. United

States, 493 F.2d at 1298. The mere fact that corporate policy

requires an employee to remain on the premises during meal breaks

does not necessarily mean that a meal provided by the employer is

provided for a noncompensatory business reason of the employer.

See Commissioner v. Kowalski, 434 U.S. at 93 (quoting S. Rept.

1622, 83d Cong., 2d Sess. 190 (1954)) (meals are excludable only

if the "employee must accept * * * [the] meals * * * in order

properly to perform his duties"); Caratan v. Commissioner, 442

F.2d at 609 n.4; see also sec. 1.119-1(a)(2)(i), Income Tax Regs.

(section 119 excludes from gross income the value of lodging that

an employee must occupy on the premises only when the lodging is

"required * * * as a condition of his employment").
 - 67 -

Petitioners argue that section 119 applies to most of the

employees in question because petitioners require them to stay on

the premises during meal periods to handle emergencies which may

and do occur. Petitioners list the following happenings as

emergencies of their business: Plumbing and electrical problems,

backed-up hotel or restaurant lines, jackpot payouts, a surge in

gambling, equipment failures, bomb threats, and fires.

Petitioners argue that their management, through the exercise of

their business judgment, have concluded that the exigencies of

petitioners' business mandate that all employees in specified

categories remain on the premises during their full shifts in

order to respond to emergencies.

We disagree with petitioners that those employees must stay

on the premises to respond to emergencies that could occur during

their meal breaks. Unlike petitioners, who for this purpose

describe some fairly routine occurrences as emergencies, we read

the word "emergency" more narrowly to mean an "unexpected,

serious occurrence or situation urgently requiring prompt

action." Webster's II New Riverside University Dictionary 427

(1994). The situations petitioners refer to as emergencies may

in the eyes of petitioners' management demand a quick response by

petitioners in order to keep their business profitable and

competitive, but all these happenings are not emergencies within

the meaning of the regulations. In any case, petitioners have

not shown that they are required to furnish free meals to their
 - 68 -

employees in order to assure a prompt and orderly response to

these situations.

We do not substitute our judgment for the business judgment

of petitioners' management to the effect that it was wise for

petitioners to give their employees free meals. Instead, we look

to the objective facts of this case and see that some, but far

from all, of petitioners' employees must be available during

their meal periods to respond to emergencies that could possibly

arise in petitioners' business. We find from the objective facts

of this case that petitioners' employees were hired mainly (if

not solely) to perform duties concerning the operation of a

casino in its regular course of business, and that petitioners'

past experiences indicate that the occurrence of a true

emergency, such as a fire or bomb scare, during petitioners'

operations is a rarity. The duties of very few of the employees

in dispute include responding to emergencies at the beck and

call of management.11 To the contrary, some of the labor

agreements state specifically that employees covered by those

11
The record includes a list of the essential job functions
for most of the employees at issue. Petitioners, however,
prepared this list after the subject years; petitioners did not
prepare or keep a contemporaneous written description of the
duties of each job classification during the subject years.
Given the additional fact that the record does not indicate the
extent to which the employees in each job description performed
these "essential job functions" during the subject years, or
whether any of the employees performed duties that were outside
these functions, we give limited regard to this list. We note,
however, that the list states that only the Lead PBX Operator,
PBX Operator, and Maintenance Engineer perform certain duties in
the case of an "emergency".
 - 69 -

agreements are entitled to uninterrupted breaks for meals, and,

as one of petitioners' witnesses admitted at trial, employees

under the culinary workers' agreement are seldom called to work

during a meal period. We also know that: (1) Petitioners do not

routinely call an employee back to his or her job from a break in

case of necessity, but that the employees tend to postpone their

breaks until the necessity subsides, (2) petitioners began

furnishing the meals to all of their employees because management

believed it was unreasonable to require 75 to 80 percent of

petitioners' workforce to remain on the premises during their

full shifts without offering them a free meal, and (3)

petitioners must furnish the meals to their employees free of

charge to remain competitive in the industry. These facts add to

our belief that either petitioners furnish the meals to their

employees for the employees' convenience, or that petitioners

furnish the meals to their employees to compensate them for

remaining on the premises for their complete shifts.

There may be senior managers who are so indispensable to the

operation of the Properties that they would be personally

consulted and called to duty when an emergency occurs. On the

basis of the record, however, we are unable to determine which,

if any, employees are within this category. Petitioners have

addressed this factor from an all-or-nothing point of view, and

the record does not otherwise allow us to determine who these

senior managers are. We decline to sift through the long list of

job titles at each Property and speculate as to which employees
 - 70 -

are within this group. Suffice it to say that this group is

relatively small, and an identification of this group would not

affect our holding herein.

We conclude that none of petitioners' employees may exclude

the meals from gross income on account of this factor.

4. Short Lunch Period With Inability To Eat Elsewhere

An employer furnishes a meal to an employee for a

substantial noncompensatory business reason if the employer's

business demands that the employee's meal period be short and the

employee cannot be expected to eat elsewhere in such a short

period of time. Sec. 1.119-1(a)(2)(ii)(b), Income Tax Regs.

Such may be the case, for example, if the employer is engaged in

a business in which the peak workload occurs during the normal

meal periods. Id. Such is not the case when the employer limits

the employee's meal period so that the employee may leave work

earlier in the day. Id.

Petitioners generally argue that the fact that many of their

employees have meal periods of 45 minutes or less means that

petitioners have a substantial noncompensatory business reason

for furnishing meals to them. We disagree. The mere fact that a

meal period is 45 minutes or less does not mean that the value of

meals that an employee receives without charge at an employer

cafeteria is excludable from gross income under section 119.

What is critical to this factor is that the employer's business

demand that the employee's meal period be short and that the
 - 71 -

employee cannot be expected to eat elsewhere in the short period

of time allotted by the employer for a meal.

Petitioners meet neither of these requirements. Varied

eating facilities are located near the Properties, and

petitioners' employees can receive a quick meal at many of these

facilities. Nor does petitioners' business demand that

petitioners limit their employees to a meal period of no more

than 45 minutes; petitioners' peak workload also does not occur

during the normal meal periods. Indeed, petitioners allot many

of their employees a meal period of 60 minutes, and the length of

the meal periods is not consistent among the Properties. Meal

breaks among the Properties range in length from 30 to 60 minutes

for employees in the same job classification,12 and we are unable

to discern the need for an employee at one Property to have a

shorter meal period than a similar employee at another Property.

Insofar as the record discloses, petitioners could lengthen the

work hours of an employee if he or she required a meal period

longer than 45 minutes.13 In the absence of persuasive evidence

supporting petitioners' assertion that the requirements of their

business demand that their employees be limited to a short meal

12
The table shows, for example, that parking attendants
receive 60 minutes at Sam's Town and CHC and 30 to 40 minutes at
Fremont; hotel clerks and phone operators receive 45 minutes at
Stardust and 60 minutes at all other properties; slot
floorpersons receive 60 minutes at Fremont and 30 minutes at
Stardust and Sam's Town (the period at CHC is unknown).
13
We note, however, that 45 minutes was not shown to be
insufficient time to eat a meal under the facts herein.
 - 72 -

period, we conclude that none of petitioners' employees may

exclude the meals from gross income on account of this factor.

5. Inadequate Eating Facilities

An employer furnishes a meal to an employee for a

substantial noncompensatory business reason if the employee could

not otherwise secure proper meals within a reasonable meal

period. Sec. 1.119-1(a)(2)(ii)(c), Income Tax Regs. Such may be

the case, for example, when there are insufficient eating

facilities in the vicinity of the employer's premises because the

employee works at a remote or isolated locale. See id.; see also

Rowan Cos. v. United States, 452 U.S. 247 (1981) (workers on

offshore oil rigs); Stone v. Commissioner, 32 T.C. 1021 (1959)

(construction workers in Alaska); Olkjer v. Commissioner, 32 T.C.

464 (1959) (construction workers in Greenland). See generally

Rev. Rul. 72-385, 1972-2 C.B. 536 (fishermen on schooner); Rev.

Rul. 71-267, 1971-1 C.B. 37 (Navy personnel assigned to offshore

islands).

Petitioners contend that most of their employees qualify

under section 119 because there are insufficient eating

facilities near each Property to allow their employees to obtain

proper meals during their breaks. Petitioners also contend that

they prohibit their employees from leaving the premises during

their shifts, except in case of dire emergency, and that

petitioners prohibit their nonmanagerial employees from eating in

the public restaurants located on the Properties. Petitioners

elicited testimony from Mr. Thompson to the effect that no one,
 - 73 -

including the employees covered by the Teamsters' agreement,

leaves the Properties during breaks.

We are not persuaded by these arguments. First, we have

found as a fact that there are adequate eating facilities around

the Properties, and that these facilities are of varied types.

The aggregate seating capacity of these facilities is far greater

than the seating capacity of each Cafeteria. Although

petitioners ask the Court to find as a fact that their employees

cannot eat in the restaurants of other casinos because those

restaurants are limited to "guests", we refuse to do so. We are

unpersuaded that petitioners' employees cannot eat in those

restaurants if they choose to.

We also are not persuaded that most of petitioners'

employees can never leave the Property during their shifts,

except in case of dire emergency. In addition to the fact that

no employee was disciplined for leaving the premises during the

subject years, and that the Teamsters' agreement provides

expressly that the covered employees may leave the premises

during meal periods, we are mindful of the testimony of Ms.

Burns. In response to a question asked by petitioners' counsel

as to Ms. Burns' knowledge on the distance from Stardust to the

Fashion Show Mall, Ms. Burns testified: "Yes, I've had to run

from the Stardust to the Fashion Show Mall on errands before, and

to be honest with you, I've had a difficult time getting back in

an hour." Ms. Burns also testified that she did not recall any

Stardust employee ever leaving the premises during their breaks,
 - 74 -

but, in the same breath, admitted that she has eaten at the

Fashion Mall during a break, and that she has run errands at the

mall during her breaks. We also note that the labor agreements

refer to free meals but are silent on the requirement that

employees stay on the premises. Why does not one of these

agreements state clearly a prohibition against leaving the

property if that was the driving force for the free meals?

We conclude that the meals of none of the employees qualify under

section 119 because of inadequate eating facilities.

6. Food Service Employees

An employer furnishes a meal to an employee for a

substantial noncompensatory business reason if the employee is a

food service employee and the employee receives the meals for

meal periods during which he or she works. Sec.

1.119-1(a)(2)(ii)(d), Income Tax Regs. That the meal is

furnished during, immediately before, or immediately after the

employee's working hours is irrelevant to this factor. Id.

The parties agree that most of the food service employees,

by job description, may exclude their meals under section 119.

They disagree, however, that the cocktail waitresses, bartenders,

and barbacks are "food service employees". Petitioners contend

that these categories of employees are "food service employees"

because they are part of petitioners' integrated food and

beverage service operation. We disagree. None of these

employees work in a restaurant or are connected therewith. The

employees in these three job descriptions work mainly in
 - 75 -

petitioners' lounges or in the gambling area, supplying gamblers

with free alcohol 24 hours a day. The question, therefore, is

whether the serving of alcohol is the serving of food. We do not

believe it is. We construe the word "food", for this purpose, to

mean "Material, usu. of plant or animal origin, containing or

consisting of essential body nutrients, as carbohydrates, fats,

proteins, vitamins, or minerals, taken in and assimilated by an

organism to maintain growth and life." Webster's II New

Riverside University Dictionary 494 (1994). Alcohol is simply

not within this definition. Indeed, in the case of bartenders,

they are treated differently from the other "culinary workers"

under the labor agreement that applies thereto. We conclude that

petitioners' cocktail servers, bartenders, and barbacks are not

food service employees, and, hence, that they are not entitled to

exclude their meals on that account.

7. Promote Morale or Goodwill

An employer furnishes a meal to an employee for a

compensatory business reason if the employer furnishes the meal

intending to promote the employee's morale or goodwill. Sec.

1.119-1(a)(2)(iii), Income Tax Regs.

Petitioners furnish the meals to their employees to retain

them as employees. Accordingly, petitioners furnish the meals to

promote employee morale and goodwill, and, hence, petitioners

have a compensatory business reason in furnishing the meals.

Absent a substantial noncompensatory business reason, meals
 - 76 -

furnished for a compensatory reason are not excludable from

income under section 119.

8. Attract Prospective Employees

An employer furnishes a meal to an employee for a

compensatory business reason if the employer furnishes the meal

intending to attract prospective employees. Sec.

1.119-1(a)(2)(iii), Income Tax Regs.

Petitioners furnish the meals to their employees to attract

new employees. Accordingly, petitioners have a compensatory

business reason in furnishing the meals and, absent a substantial

noncompensatory business reason, the meals are not excludable

from income under section 119.

9. Compensation Under Contract or Statute

The labor agreements at hand do not explicitly characterize

the meals as employee compensation. Our characterization of the

meals as compensation, however, is not bound to the language that

the parties to an agreement utilize therein. We look to the

facts and circumstances of this case to determine whether the

actions of the parties to the agreements indicate that the

parties intended that the meals be compensation. We answer this

question in the affirmative.

We read the record to indicate that one of petitioners'

reasons for providing meals to their employees is to fulfill the

unions' demand that petitioners provide union employees with

meals during their working hours for the primary benefit of the
 - 77 -

employees.14 Reading the specificity of the meal provisions in

the labor agreements, we find that the unions painstakingly went

to great lengths in those agreements to assure themselves that

casino operators such as petitioners would furnish their union

employees with healthful meals during their workday. Meals

provided in such a setting are not furnished to allow an employee

to perform his or her job properly.

We also find relevant that the labor agreements provide

specifically that all union employees will receive meals upon

their completion of a minimum workday. We are unable to

comprehend why a short shift employee covered by the Teamsters'

agreement, who is allowed to receive a meal after working

3 hours, must receive that meal in order to perform his or her

job properly. The same is true with respect to an employee who

is covered by the operating engineers' agreement and who is

summoned to work for 4 hours in an emergency, as well as the

employee covered by the same agreement who works more than

2 hours of overtime. In both cases, the employee earns the right

to a meal. Do these employees really need those meals in order

to perform their jobs properly? We think not. We conclude that

the meals are furnished for a compensatory business reason and,

absent a substantial noncompensatory business reason, are not

excludable from income under section 119.

14
In this regard, we find unpersuasive the unsupported
testimony of Mr. Thompson, that petitioners' provision of
employee meals resulted in increased profits.
 - 78 -

10. Miscellaneous

Petitioners set forth three additional arguments to support

their claim that they furnish the meals to their employees for a

substantial noncompensatory business reason. First, petitioners

argue, they have security concerns in that most of their

employees have access to significant amounts of cash, chips, or

guests' property as part of their job functions. In this regard,

petitioners contend, they have a substantial noncompensatory

business reason for furnishing these employees with meals on the

premises because allowing them to leave the premises during their

shifts will increase the probability and occurrences of theft.

Petitioners also contend that they are concerned that employees

who leave the premises for meals will not return timely, being

distracted and tempted by the glitter and vices of Las Vegas.

Second, petitioners argue, some of their employees wear uniforms

at work; thus, petitioners have a substantial noncompensatory

business reason for furnishing these employees with meals because

the sight of a uniformed employee at the eating establishment of

a competitor will tarnish the public's perception of the quality

of food served on petitioners' premises. Third, petitioners

argue, some of their employees work the graveyard shift; thus,

petitioners have a substantial noncompensatory business reason

for furnishing these employees with meals mainly because the

climate of the late night does not allow these employees to

receive a suitable meal elsewhere.
 - 79 -

None of these arguments persuades us that the relevant

employees may exclude their meals under section 119. These

contentions are not substantial noncompensatory business reasons

within the meaning of the regulations. Petitioners' contentions

about their security concerns, their employees' uniforms, and the

timing of the graveyard shift fail to go to the heart of the

convenience of the employer test; namely, that the "employee must

accept * * * [the] meals * * * in order properly to perform his

duties".15 Commissioner v. Kowalski, 434 U.S. at 93 (quoting S.

Rept. 83-1622, at 190 (1954)). Section 119 requires a closer and

better documented connection between the necessities of the

employer's business and the furnishing of free meals.

We now turn our attention to whether each of substantially

all of petitioners' employees receive meals excludable from gross

income under section 119. Respondent asserts that the term

"substantially all" means that at least 90 percent of the

employees must be able to exclude their meals under section 119.

Petitioners counter that the term requires a lower percent.

15
With respect to the uniforms and the graveyard shift, we
have additional concerns. Petitioners allow their employees to
travel to and from work in uniform, and employees have worn their
uniforms while dining in the restaurants of petitioners'
competitors. Moreover, petitioners provide their employees with
dressing rooms and storage for safeguarding their nonbusiness
attire, and the uniforms worn by most of the employees do not
appear to be such that the employees cannot quickly change into
nonbusiness attire. With respect to the graveyard shift, we are
unable to determine which employees work this shift. Thus, even
if we were to assume arguendo that these late night workers were
entitled to exclude their meals because of the time of their
shift, an assumption which we reject, we would not be able to
ascertain which employees fall within this category.
 - 80 -

The Court of Appeals for the Ninth Circuit has held in a

different context that 68 percent is not "substantially all" as

that term is used in a predecessor of section 368 relating to

corporate reorganizations. See Pillar Rock Packing Co. v.

Commissioner, 90 F.2d 949 (9th Cir. 1937), affg. 34 B.T.A. 571

(1936).

We leave for another day the exact percentage of employees

that constitutes "substantially all" within the meaning of

section 1.119-1(a)(2)(ii)(e), Income Tax Regs. Petitioners have

not established that even 50 percent of their employees received

qualifying meals. This is not enough to be substantially all.

Given our conclusion that none of the meals of the employees

in question qualify for the section 119 exclusion, we look solely

to the employees conceded by respondent to be within section 119

and determine what percentage of all employees at each Property

they constitute. Respondent's concessions cover the following

numbers of employees:

1987 1988

CHC 450 458
Fremont 427 423
Sam's Town 595 626
Stardust 1,024 1,061

Respondent's concessions translate into the following

percentages:

1987 1988

CHC 44.9 43.5
Fremont 45.6 48.2
Sam's Town 42.4 41.5
Stardust 45.5 44.1
 - 81 -

All of these percentages are less than even 50 percent.

Thus, each of substantially all of petitioners' employees may not

exclude the meals from their gross incomes, and, hence, all

employees may not exclude the meals. It follows that petitioners

may deduct only 80 percent of their expenses with respect to the

meals, and we so hold. We have considered all arguments made by

petitioners for a contrary holding and, to the extent not

discussed above, find them to be irrelevant or without merit.

To reflect the foregoing,

Decisions will be entered

under Rule 155.