Strip Clubs Nailed for $8.5 Million in Settlement of Independent Contractor Misclassification Claims

Independent contractor misclassification settlement $8.5 million spearmint rhinoI learned there’s a chain of strip clubs called the Spearmint Rhino. I didn’t know that was an option for rhinos. The rhinos I’ve seen at the zoo smell nothing like spearmint.

This club was paying its dancers as independent contractors. As we’ve seen in other “exotic dancer” cases, that can be an expensive decision.

This time it cost The Rhino $8.5 million. A class of 8,000 ladies reached a deal after claiming they should have been treated as employees under Caliufornia and federal wage and hour laws. The class members claimed they were denied overtime, denied a minimum wage, denied meal and rest breaks, and had their tips misappropriated.

In other words, they didn’t feel like they had much to dance about.

What happens now to The Rhino? Does it reclassify its dancers as employees? Who knows. Who cares.

I will, however, be asking the zoo if there’s anything they can do about the rhino smell. It seems there may be a minty version of the beast.


For more information on independent contractor issues and other labor and employment developments to watch in 2018, join me in Cincinnati on March 28 for the 2018 BakerHostetler Master Class on Labor Relations and Employment Law: A Time for Change. Attendance is complimentary, but advance registration is required. Please email me if you plan to attend,, and list my name in your RSVP so I can be sure to look for you.

© 2018 Todd Lebowitz, posted on, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

Misclassification settlement strips $6 million from Club Assets

IMG_1090When I was an undergrad at Michigan, any time I would drive to the airport or to Tiger Stadium, I’d see billboards for Deja Vu, a strip club with (apparently) lots of locations. I never visited (not into that sort of thing, thanks for asking), and I never thought much of it. I certainly did not expect to be writing about Deja Vu and independent contractor misclassification 25 years later. But here goes.

When patrons of these fine establishments partake in the traditional lap dance, it’s doubtful they’re thinking about whether these often-single-mom “entertainers” who are just trying to make a living have been properly classified under wage and hour law. More likely, they’re thinking about — never mind.

But that’s an important issue, as Deja Vu recently learned, when it was sued by a class of 28,177 dancers alleging they were misclassified as independent contractors, rather than Continue reading

Independent Contractor vs. Employee, Hit List by Industry, 2016-2017

img_1044Are you on the hit list?

The highest concentration of independent contractor misclassification lawsuits during the past 12 months seem to be in these areas:

  • Agricultural workers
  • Beauty consultants (sales)
  • Cable installers
  • Car services (passengers, ride-hailing services)
  • Computer programmers
  • Construction workers
  • Consultants (various industries)
  • Couriers
  • Delivery drivers (food, goods, freight)
  • Exotic dancers (strippers)
  • Freelance writer/reporters/other journalism
  • Information technology workers
  • Installers (cabinets, appliances, windows, furniture)
  • Insurance sales representatives
  • Janitorial franchise owners (individuals)
  • Maintainance workers
  • Newspaper carriers
  • Performers (actors, cheerleaders, wrestlers)
  • Physicians
  • Property inspection services
  • Repair technicians
  • Sales representatives
  • Travel agents
  • Truck drivers
  • Yoga instructors

This list should not in any way suggest that the categories of workers in this list should be employees. That determination will depend on the facts in any given situation. All of these types of workers, however, have been plaintiffs in recent lawsuits alleging that they were misclassified as independent contractors and should have been deemed employees.

Companies who retain these types of workers as independent contractors should take proactive steps to evaluate the facts in these relationships, particularly under the variety of federal and state law tests that may apply. Companies should also remember that because different tests apply to different laws, workers may be properly classified as independent contractors under some laws and some tests, but may be deemed employees under other laws and other tests.

© 2017 Todd Lebowitz, posted on, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

Strippers Have No Class, Judge Rules

We’ve seen lots of exotic dancer cases lately (clarification for my wife: seen lots of cases, not dancers) where the dancers — apparently this is the preferred legal term for strippers — claim they have been misclassified as independent contractors.

employment-class-action-blogMany of these claims have succeeded, but here’s an unusual way to lose class action status. This judge refused to certify the proposed class because of lack of experience of counsel. Thanks to my colleague, Greg Mersol (experienced counsel), for this post. Class dismissed!

Unlikely Lessons in Legal History, Edition 1.
Why lawyers use the term “exotic dancer” instead of stripper:

Lawyer’s Wife:  Were you out cavorting with strippers again?

Lawyer:  No.

© 2017 Todd Lebowitz, posted on, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.