This is such a tricky issue. Yes, clubs violate FLSA rules by misclassifying dancers as independent contractors yet treat them as employees. But historically when clubs have offered dancers the chance to become employees and work for an hourly wage - the dancers decline the offer because they know the independent contractor model is still in their best interest even with rules and house fees.
^ Agree and in most cases these suits are brought after the dancer is no longer working at the club. They and their lawyers see it as an easy way to pick up unearned cash. They knew the set up when they started and could have quit whenever they wanted.
^ won’t work because the suggestion that you are making would require insurance that would conform to the needs of the promotor, which essentially what your suggestion is about
"The dancers knew the score when they signed on" is such a nonsensical argument.
The clubs broke the law, it's that simple. I absolutely do not blame the dancers for making all they can under the clubs' illegal operating conditions, and then calling the clubs on their bullshit with a lawsuit such as this one. No blame whatsoever. All they have to do to avoid such law suits is treat their independent contractors like independent contractors. They chose not to, they paid the price.
If your comment is real (meaning you do have a stake in RICK), the trade action on 2/28 doesn't reflect a concern. Maybe something to work with leading up to the 5/11 EPS call @ $0.72. It's unclear when that fine is due, or how it will be paid....but future EPS will be affected.
I think in the end of the day the employee model could make sense. Pay them minimum wage and make the money off customer fees. They can dance for tips which they can report or not since they’re all cash. With the amount of money we spend no one carres about a few more dollars in cover charges or room fees.
Boomer. The way the employee model works is they get a set schedule. Plus possibilities for promotions ie doing marketing promoting work getting into management bottle service etc. tehy get paid per hour. Plus take home what they make in dances vip etc. they still pay a house fee though. And can opt to have that taken out of their check. The huge benefit nis qualifying for apartments car notes things you need pay stubs for.
That’s sort of a modified version how it works in clubs I know. The house fees and tipping management out is where the contention is. A tipped employee tipping out the bartender or house mom is one thing but the manager is something different. Honestly one positive to me of the employee model where base income is guaranteed is it promotes standards. It will quickly weed out the girls you wonder why they’re dancing and promotes consistency across shifts. You also get rid of the lawsuits. Most of the girls who file these suits are either retired or really shouldn’t have been dancing.
I believe they don't want to call them employees, because then they have to get into paying Workmen's Comp, and Unemployment Insurance on them as well. And an outfit as big as Rick's potentially would have to provide health care as well, under Obamacare rules.
It's not just strip clubs. Many small construction contractors call their helpers "contractors" for the above reasons. I know a young man that thought it was smart to work construction for cash. Then he fell off a rood and broke his back. Luckily, he mostly recovered. But suddenly that cash arrangement doesn't look so good when you are laying on your back looking up at the sky unable to move.
Managers who demand tip-outs are parasites who kill their clubs.
Stripper is a brutal job. 20% of the dancers make 80% of the money, and can afford the house fees and tip outs. The clubs use them as an example for the other dancers, as to why they should agree to the fee structure. Eventually, the 80% realize this isn't going to work for them and become churn.
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last commentMaybe it's time for me to sell my Rick's stock.
Wonder how many of the clubs run the same way.
This is such a tricky issue. Yes, clubs violate FLSA rules by misclassifying dancers as independent contractors yet treat them as employees. But historically when clubs have offered dancers the chance to become employees and work for an hourly wage - the dancers decline the offer because they know the independent contractor model is still in their best interest even with rules and house fees.
^ Agree and in most cases these suits are brought after the dancer is no longer working at the club. They and their lawyers see it as an easy way to pick up unearned cash. They knew the set up when they started and could have quit whenever they wanted.
I also notice that it seems to not happen in red states.
^ won’t work because the suggestion that you are making would require insurance that would conform to the needs of the promotor, which essentially what your suggestion is about
These suits need to be more common. I support them 💯
"The dancers knew the score when they signed on" is such a nonsensical argument.
The clubs broke the law, it's that simple. I absolutely do not blame the dancers for making all they can under the clubs' illegal operating conditions, and then calling the clubs on their bullshit with a lawsuit such as this one. No blame whatsoever. All they have to do to avoid such law suits is treat their independent contractors like independent contractors. They chose not to, they paid the price.
@Jascoi
I think in the end of the day the employee model could make sense. Pay them minimum wage and make the money off customer fees. They can dance for tips which they can report or not since they’re all cash. With the amount of money we spend no one carres about a few more dollars in cover charges or room fees.
Boomer. The way the employee model works is they get a set schedule. Plus possibilities for promotions ie doing marketing promoting work getting into management bottle service etc. tehy get paid per hour. Plus take home what they make in dances vip etc. they still pay a house fee though. And can opt to have that taken out of their check. The huge benefit nis qualifying for apartments car notes things you need pay stubs for.
That’s sort of a modified version how it works in clubs I know. The house fees and tipping management out is where the contention is. A tipped employee tipping out the bartender or house mom is one thing but the manager is something different. Honestly one positive to me of the employee model where base income is guaranteed is it promotes standards. It will quickly weed out the girls you wonder why they’re dancing and promotes consistency across shifts. You also get rid of the lawsuits. Most of the girls who file these suits are either retired or really shouldn’t have been dancing.
I believe they don't want to call them employees, because then they have to get into paying Workmen's Comp, and Unemployment Insurance on them as well. And an outfit as big as Rick's potentially would have to provide health care as well, under Obamacare rules.
It's not just strip clubs. Many small construction contractors call their helpers "contractors" for the above reasons. I know a young man that thought it was smart to work construction for cash. Then he fell off a rood and broke his back. Luckily, he mostly recovered. But suddenly that cash arrangement doesn't look so good when you are laying on your back looking up at the sky unable to move.
Managers who demand tip-outs are parasites who kill their clubs.
Stripper is a brutal job. 20% of the dancers make 80% of the money, and can afford the house fees and tip outs. The clubs use them as an example for the other dancers, as to why they should agree to the fee structure. Eventually, the 80% realize this isn't going to work for them and become churn.
I haven't seen managers getting tipped out but some inflate or akim house fees. Inflict fines for the smallest things.
Theyd have to have benefits and all that only if the business has over 50+ employees or around that