“Gentlemen’s” Club Owner Settles Nearly $1 million Wage & Hour Class Action Suit

Attorneys Tod Cochran and Warren Pyle represented a group of female employees of a North Short nightclub. An Essex Superior Court Judge recently approved the settlement last week.

State and federal law requires that employers pay at least minimum wage, as well as make appropriate contributions to Social Security, Medicare, workers compensation, and the like, on behalf of employees. Employers do not have these obligations for “independent contractors.” Some employers try to take advantage of this distinction by misclassifying employees as independent contractors. Cochran and Pyle filed suit against Golden Bananas, alleging that the dancers, and other female personnel were improperly classified as “independent contractors.” Instead of being paid any wages, the dancers were forced to pay the night club a shift fee for the privilege of dancing.

State law has a narrow definition of independent contractors – it is intended to apply to a small group of persons skilled in a particular field who control their own work, work at multiple locations, and perform work without direct supervision. Night club dancers, by contrast, have specific scheduled hours, often work at one employer, and are expected to follow the direction of supervisors. An employer who misclassifies employees as “independent contractors” can be subject up to three years of missing back pay, which can multiplied up to three times for damages, in addition to attorney’s fees and costs.

On the eve of trial, the class action group and nightclub settled the suit with neither party making any admission as to fault or legality of either party’s actions. Under the terms of the agreement, the employer is paying a total of $900,000. Dancers who qualify for the class action will have the opportunity to receive a settlement amount or pursue any legal claims on their own. Any money from the settlement that is left over and unclaimed will be donated to Justice at Work.