Some strip clubs facing lawsuit over performer tips
NEW ORLEANS, LA (WVUE) - The federal government recently heightened its enforcement of labor and wage laws.
According to our partners at City Business, one of the results has been an increase in lawsuits against businesses by employees who say they aren't being paid adequately.
Decisions and settlements have been largely in favor of the plaintiffs, especially when it comes to one profession...exotic dancers.
Gentlemen's clubs and strip joints are agreeing to multi-million-dollar payouts and changing the way they do business.
"What's happening in the restaurant industry...it's very similar where employers and owners there are getting in trouble because they're taking pooled tips and using them to tip out salaried employees. That's illegal. So what's happening in the strip clubs is the tips that the dancers are making are being used to pay the DJ or the bouncer and in many instance the dancer has to pay an up front fee to get in the club on a particular night," said CityBusiness editor Greg Larose.
Larose says Ricks Cabaret in New Orleans and The Penthouse in Baton Rouge are facing allegations in a civil suit where employees claim tips are being improperly distributed.