Dancers Claim Being Stripped of Wages

As noted previously, a topic that doesn’t receive enough attention is the misclassification of employees as independent contractors. Colorado has just enacted a state law dealing with this subject, and there’s also a federal bill pending. There’s now a case on this subject filed in federal court in Minnesota that’s drawing attention.

Two strippers claim, in a class action suit, that their club didn’t pay them wages and required them to pay a nightly “house fee” for the privilege of working there. They were allowed to keep some of the tips they received from customers, but these tips sometimes didn’t amount to the minimum wage. The club classified them as independent contractors.

The adult entertainment industry often classifies its dancers as independent contractors. It’s possible that a dancer could be an independent contractor if she (or he) danced for a variety of different clubs. Most of them dance for only one club and are probably employees.

A lot of employers classify some of their workers as independent contractors. The problem is that these contractors work for the employer all the time. They often do the same work being done by employees. In all likelihood, they’ve been misclassified. To help you get a handle on the distinction, an independent contractor is someone like a plumber, an electrician, a house painter, or a worker who performs work for you on Monday and performs similar work for other companies for the remainder of the week.

If your company has several workers classified as independent contractors, you should have a lawyer do an audit of these jobs. It’s better for the lawyer to do it than to wait on the Department of Labor or the Internal Revenue Service.

The strip club owner in the Minnesota case has said, “We have nothing to hide.” Indeed.