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NY Exotic Dance Club to Pay $8M for Employee Misclassification

April 26, 2013

In a previous Riverside, California employment lawyers blog, Vincent Howard discussed a $12.9 million employment misclassification lawsuit settlement involving a group of exotic dancers from California and other states, who claimed that the adult strip club chain Spearmint Rhino wrongly classified them as independent contractors, violating the Fair Labor Standards Act (FLSA) by neglecting to compensate them with minimum wage and employee benefits.

In similar employee misclassification news, a group of 1,245 dancers working at a gentleman's club in New York City have also filed a lawsuit over improper classification and violations of the FLSA, and have reportedly reached an $8 million preliminary lawsuit settlement.

According to the lawsuit filed in December 2009 by dancers Stephanie Carattini and Nicole Hughes, Penthouse Executive Club engaged in employee misclassification by erroneously classifying the dancers as independent contractors. The dancers also accused the strip club of failing to pay them minimum wage and overtime compensation, for failing to reimburse them for the cost of purchasing and cleaning their uniforms, and for withholding a portion of the tips that dancers received from clients for their dances. Another lawsuit was reportedly filed in February 2010 by another dancer, and the cases were then consolidated in federal court.

The employee misclassification lawsuit accuses the dance club of engaging in violations of the FLSA, along with New York state labor law, and for being out of compliance with basic worker protection statues. The preliminary lawsuit settlement reportedly gives each dancer a payment of $3,737.79 for the first year of working at the club, and $988.13 for the subsequent years worked.

The case is part of an ongoing string of recent cases that allege employee misclassification and wage and hour violations in the exotic dancing industry. As Vincent Howard discussed in another Santa Ana wage and hour lawyers blog, an exotic men's club in Washington D.C. was also recently found to have violated the FLSA by failing to pay the dancers with minimum wage.

As employee misclassification attorney Vincent Howard frequently discusses, misclassifying workers continues to be a huge and growing problem in the California workplace. When employers misclassify workers, they often violate minimum wage and overtime payments, rest and meal break provisions, tax responsibilities, and a worker's right to employee benefits, along with other state and federal employment laws and regulations. Employee misclassification often results in wage and hour lawsuits, leaving employers who fail to properly classify their employees according to FLSA provisions with hefty fines and penalties.

In Costa Mesa, California contact Howard Law, PC today.

NYC 'gentlemen's club' to pay dancers $8 mln, Thompson Reuters, April 9, 2013

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)

Related Blog Posts:

Exotic Dancers Win $12.9M in Spearmint Rhino Employee Misclassification Lawsuit Settlement, California Employment Lawyers Blog, December 4, 2012

NY Judge Decides Unpaid Internship Lawsuit Against Fox Searchlight Can Grow, California Employment Lawyers Blog, October 12, 2012

Texas Pipe Company to Pay over $104K in Back Wages for Employee Misclassification, California Employment Lawyers Blog, September 10, 2012

Celine Dion Sued for Employee Misclassification, Wage and Hour Violations, California Employment Lawyers Blog, July 10, 2012

Permian Basin Community Centers to Pay Almost $69K for Employee Misclassification Violations, California Employment Lawyers Blog, June 13, 2012

Aspen Power Pays Over $485K in Overtime Back Wages for Employee Misclassification, California Employment Lawyers Blog, June 4, 2012

Wal-Mart To Pay Nearly $5M in Back Wages, Damages for Employee Misclassification, California Employment Lawyers Blog, May 25, 2012

Novo Nordisk Sued in Another Employee Misclassification Lawsuit for $70M, California Employment Lawyers Blog, April 10, 2012

DOL Launches Employee Misclassification Initiative in Seattle-based Nail Salons, California Employment Lawyers Blog, March 12, 2012

State of California Signs Agreement with DOL to Reduce Employee Misclassification, California Employment Lawyers Blog, February 20, 2012

Temp Agency to Pay Nearly $250K for Wage and Hour Violations, Employee Misclassification, California Employment Lawyers Blog, February 15, 2012

CA Drug Sales Reps Sue Novo Nordisk in Class Action Wage and Hour Lawsuit, California Employment Lawyers Blog, July 28, 2011

Exotic Dancers Could Get $10M in California Class Action Employment Misclassification Lawsuit Settlement, California Employment Lawyers Blog, April 27, 2011

Strip Club Violates FLSA--Judge Rules Exotic Dancers are Not Independent Contractors, California Employment Lawyers Blog, May 27, 2011