A federal judge has ruled that federalcovers strippers at Rick’s Cabaret in midtown Manhattan. As a result, they must be paid the minimum wage and are entitled to overtime when they work more than 40 hours in a week.
The dancers had sued the club, claiming it deducted fees from their pay, which often dropped their earnings below minimum wage. Rick’s defended the practice by claiming the women were independent contractors. The court ruled they were employees who were entitled to minimum wage and overtime.
For its part, Rick’s has vowed to appeal the ruling and continue business as usual.
Note: Employers that use what they consider independent contractors should review the relationship to determine if the workers are properly classified. The IRS and the U.S. Department of Labor are cracking down on employee misclassification.