"The Supreme Court, however, found that the club exercised control over the dancers that constituted an employer-employee relationship. Among those controls were rules regarding contact between dancers and customers, fines for violations of those rules, and club-established standards involving minimum tips required of customers."
Another court ruling calls into question the independent contractor model. The problem is that the strip clubs want to exercise control like an employer but do not want to accept employer responsibilities.
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The strippers lost that case. This means the club has to report their tips for the purposes of unemployment insurance and the club is also going to report their tips to the IRS.
@canny: Not quite. The club is probably required, depending on applicable law, to report a percentage of revenue the girls generate, e.g. dances they sell, etc, as tips. It's up to the girls to report anything above that.
@GMD. True dat. Will probably encourage OTC. Strippers probably be thinking "IRS don't need to know 'bout no OTC tips, do they?" In other news, Juice be plannin' a Kansas trip. Packin' up a whole BUNCH o' cucumbers now!
i might just have to go off the grid entirely
Employers also have to pay into the unemployment fund. And if strip club owners aren't careful, they will be paying the employers' portion of social security and medicare taxes too.
Personally, I think the independent contractor model is better for both dancers and customers. But club owners must treat the dancers as independent contractors, not as a ruse for evading their responsibilities.
"Personally, I think the independent contractor model is better for both dancers and customers. But club owners must treat the dancers as independent contractors, not as a ruse for evading their responsibilities."
Agreed.
Can't have your cake and eat it too.
@Dougster: Well of course you can. In fact, there's no point in having cake if you can't eat it.
Once you eat it it's gone, and you no longer have it.
commented 4 Hours Ago
"Personally, I think the independent contractor model is better for both dancers and customers. But club owners must treat the dancers as independent contractors, not as a ruse for evading their responsibilities."
Agreed.
I agree too.
But then you will have had it and eaten it, too. Doesn't mean the saying isn't silly.
The lawyers love this. :)
The lawyers may love it, but it is the owners making it complicated.
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