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She is suing the club for wage violations, arguing she was never paid minimum wage and was often required to share her tips with other employees. She is suing the club for wage violations. I just think that it is very important to shed some light on this issue. Such litigation against strip clubs has been going on for years, however, with the dancers often prevailing and, in some cases, even obtaining multimillion-dollar awards.
Gregg C. Greenberg, a Silver Springs, Md. The strip club industry is fragmented, with many small operators, even though they may employ several hundred dancers, said Michael LeRoy, a professor at the University of Illinois College of Law, who has studied the business. He was examining litigation surrounding alleged wage theft by employers who misclassify workers as independent contractors rather than as employees.
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Workers in the gig economy often are misclassified, he said. The largest category of claims involved strip clubs, LeRoy said. So he decided to dig deeper. In his study fromhe researched 75 state and federal court rulings on wage and hour claims by dancers who work at strip clubs.
LeRoy found dancers won 93 percent of the misclassification rulings. Many of the cases were in California, Nevada and Illinois.
I would imagine that that practice more or less is the same in San Antonio as it would be in any other major city. The Texas Workforce Commission has examined the issue of whether exotic dancers are independent contractors or employees when determining tax liability.
It relies on 20 factors, including whether the dancers have set work hours, whether there is a continuing relationship with the club and whether they realize a profit or loss. In June, a five-person Houston jury found the dancers suing Moments Cabaret did not prove they were employees. The dancers received nothing in their wage suit. Wallace defended Moments.
Using the economics reality test, U. District Judge Lee Rosenthal in Houston found that dancers at four strip clubs were not employees in a ruling. On the flip side, though, the California Supreme Court last year ruled that dancers were considered strip club employees, ending years of being classified as contractors, Los Angeles Magazine reported. Dancers have won some big awards, too.
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Many clubs now require dancers to agree to go to arbitration to settle disputes and waive any collective- or class action. They and their lawyer did not respond to requests for comment. Patrick Danner is a San Antonio-based staff writer covering banking and civil courts. Read him on our free sitemySA.
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