$8M Minimum Wage and Overtime Settlement Approved for Dancers at New York Club

Dancers at the Penthouse Executive Club who were misclassified as independent contractors will share in an eight million dollar settlement that was approved by United States District Court Judge Kimba Wood. The lawsuit alleged that Penthouse paid the dancers no wages, unlawfully required them to pay “house fees” and other fees, and unlawfully took their tips, in violation of the Fair Labor Standards Act (FLSA) and the New York Labor Law.  Attorneys for the dancers claimed that the alleged practice of requiring the dancers to make payments to other employees constituted a demand for an unlawful kickback and that fees and other deductions levied against the owners violated the New York Labor Law. The lawsuit against Penthouse is one of several cases across the country alleging that dancers, strippers, and other workers in the adult entertainment industry have been misclassified as “independent contractors.” These cases have generally alleged that based on this misclassification, minimum wage and overtime requirements for workers have been ignored and the workers have been subjected to unlawful deductions by the owner.