Dancers at Larry Flynt's Hustler Club have filed a class action lawsuit in attempt to earn minimum wage, which the club sneakily manages to avoid by categorizing its employees as "independent contractors."
In addition to paying workers substandard earnings, the club also takes a cut of money made from lap-dances by mandating the use of vouchers called "Beaver Bucks," the Post reports. Beaver Bucks are pre-paid using credit cards, and the club hangs onto a portion of the tip.
Despite being "independent contractors," strippers were forced to pay an out-of-pocket house fee for the right to perform, in addition to being charged fines if they miss a shift.
Hustler Club is not the first of its kind to be ordered to pay minimum wage, but it has dug in its heels the hardest: Rick’s Cabaret’s paid current and former dancers $10.8 million for a similar violation, and employees at New York Dolls, FlashDancers and Private Eyes won a combined $4.3 million.
The suit does not specify damages, though more than 1,000 past and present employees could be eligible.
The club was also ordered last year to pay $2.1 million in back taxes after a judge ruled that lap dances are not considered "art," and thus not tax exempt.
