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Class act? NYC strippers to split huge settlement

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in Compensation and Benefits,Employment Law,Human Resources

A class of 1,245 exotic dancers will split an $8 million settlement resulting from claims that the Penthouse Executive Club in Manhattan’s Hell’s Kitchen neighborhood misclassified them as independent contractors.

Two dancers sued in 2009, alleging the club failed to pay them minimum wage and kept some of their tips. A similar suit followed in 2010, and the court consolidated the two. The club countersued, alleging the plaintiffs danced at other clubs—a sign they were independent contractors.

In the end, however the parties agreed to dance to the same tune. Each of the women in the class will receive a minimum of $3,727 for her first year working, and $988 for each subsequent year.

Check your exposure: If you use independent contractors, have your attorney review the contracts and work arrangements to ensure the workers are truly independent.

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