Recently, a class action lawsuit filed in 2009 against the Midtown strip club Rick’s Cabaret has resulted in the return of over $10 million dollars in back wages to the club’s current and former dancers and entertainers. Rick’s Cabaret instituted a policy by which it refused to pay its dancers and entertainers any wages whatsoever, and even charged its dancers $60 per shift. Rick’s Cabaret also collected 2 of every 20 “Dance Dollars” that dancers received through credit card payments from customers, in addition to a $4 fee. In this recent decision, the Plaintiff class successfully challenged Rick’s Cabaret’s wage policy and “Dance Dollar” policy as unlawful. The court found Rick’s Cabaret’s argument that performance fees for personal dances should offset a lack of wages to be unpersuasive. On this issue, the court specifically noted that these “performance fees” were in fact cash paid from customers directly to the dancers, and that the strip club already collected a separate service fee for the rooms rented for personal dances. The court held that dancers, as employees, were entitled to the full minimum wage for their hours worked. Further, the Judge held that the strip club’s policies of keeping 2 of every 20 “Dance Dollars” and charging customers a 4$ fee were misleading, since customers likely expected that the dancers were getting the full amount that they paid them. The remaining claim pertaining to how Rick’s Cabaret charged dancers $60 per shift is still being litigated.
At this moment, Rick’s Cabaret owes the Plaintiff class $10.8 million for the minimum wage violations and misappropriation of tips claim alone. However, with the claim pertaining to how Rick’s Cabaret charged dancers $60 per shift still on trial and liquidated damages and attorneys’ fees not yet determined, that amount could increase to well over $20 million in the near future.
The NYC Employment Lawyers at Fitapelli & Schaffer have represented exotic dancers who have worked at Private Eyes and New York Dolls. We are currently investigating similar claims against Flashdancers. Please contact us at (212) 300-0375 to schedule a free consultation to further discuss your rights. For more information, please visit our website, www.fslawfirm.com.