Recruitment of Ormsby House employees unlikely to force early closure

Some Ormsby House employees are giving notice they have new jobs following last week's job fair, but general manager Bob Cashell says it is unlikely the dwindling ranks will mean the property will close sooner than expected.

About 230 employees were given 60 days notice Sept. 21 that the hotel and casino would close and they would be laid off during a $10 million remodeling project.

The Nevada Employment Security Division's Rapid Response Team recruited about two dozen area employers for the job fair for Ormsby house employees.

"We've had a few, but not a whole bunch, who have given a week or two's notice since the fair," Cashell said Friday.

"If we lost too many it could mean closing early, but right now it doesn't look like it's going to happen that way."

The property was required by the federal Worker Adjustment and Retraining Act to give its employees at least 60 days notice before laying them off. When other Nevada casinos have done that, some have lost so many employees they were force to shut down before the 60-day period elapsed.

"It's happened before," Nevada Employment, Training and Rehabilitation Department public information officer Karen Rhodes said. "It happened with the Desert Inn in Las Vegas and with the Dunes there quite some time ago.

"Even if the entire 60-day period doesn't pass first, there's no penalty. The law reads that, under certain circumstances beyond their control that force early closure, the business falls under an exemption."

Otherwise, a business affected by the act that closes sooner than 60 days after notice is given faces penalties of $500 for each day of violation, plus amounts equal to all the back pay and benefits for each aggrieved employee for the period of violation.

"But that wouldn't be the case here. If that many people get new jobs, that's what we want to see happen," Rhodes said.

"I'm sure the Ormsby House is happy for their employees when they get new jobs."

Cashell confirmed that.

"I'm real excited. There are other jobs out there for all of them if they want them," he said.

Cashell said some employees, mostly those who are older or are semi-retired, have indicated they are not looking for other jobs and will stick with the Ormsby House until it closes. The hotel/casino expects to close by Thanksgiving. Cashell said some other employees have said they may continue to work at the property part-time even as they begin new jobs.

The Ormsby House's owners, Al Fiegehen and Don Lehr, say the extensive remodeling will bring the property to "five-star standards."

The project was planned to be conducted in phases with only portions of the facility being closed from time to time as it progressed. As work progressed, though, Fiegehen and Lehr discovered the repairs needed were so extensive the work could be accomplished easier if business operations were suspended.

Completion of the project, which includes moving restaurants, expanding the casino area, building a new entrance and rehabilitating all 200 hotel rooms, will take about eight months. Several of the current employees have said the intend to reapply when the hotel-casino reopens.