Strip club forces dancers to give up portion of tips to pay other workers, AL suit says

Two dancers at an Alabama strip club are suing the establishment, saying the club forced them to give up part of their tips to pay other employees.

They say the club denied them minimum wages and took their tips in violation of labor laws, according to a federal lawsuit filed April 7 in the Northern District of Alabama.

The former dancers at Sammy’s Gentleman Club in Birmingham are seeking $100,000.

Lawyers representing the women say the club classified dancers as independent contractors rather than employees and therefore didn’t pay the dancers any type of wage.

The dancers were paid through tips they received, however, those were partially divvied up and given to other workers at the business who don’t typically receive tips, including managers, DJs, floor men and house moms, according to the lawsuit.

“(Club owners) forced a socialist economic system on the dancers mandating they subsidize their co-workers,” the lawsuit said.

The dancers were also required to pay a kickback, called a “house fee,” to work, and the club would increase this fee later in the night, according to the lawsuit.

The club was required to pay a minimum wage of $2.13 to the employees under the Fair Labor Standards Act, but the dancers said the club didn’t pay that to entertainers.

Instead, the dancers said the club owners made dancers “pay them for the privilege of working.”

The lawsuit comes on the heels of a September ruling in favor of exotic dancers at another Alabama strip club. A judge ruled the dancers were employees rather than independent contractors, and therefore they were entitled to minimum wage and overtime pay under federal labor law.

That ruling came in part because of the level of control the club exercised over dancers, including the hours they worked and the fees they paid to perform, the judge said.

The lawsuit against Sammy’s makes a similar argument, saying the club had “significant” control over the dancers and “controlled the means and manner in which (they) could perform.”

The two dancers listed in the lawsuit are bringing a collective action against the Birmingham club for all dancers who worked there in the last three years.

McClatchy News could not immediately get in contact with the club or the employers named in the lawsuit.

This story was originally published April 9, 2024 at 11:25 AM with the headline "Strip club forces dancers to give up portion of tips to pay other workers, AL suit says."