In an industry fraught with unscrupulous club owners, the financial plight of strippers has gone largely unnoticed by the legal system. That is, until AB5 gave strippers a leg up on the issue. 

Disparities in the Industry

In a general sense, strippers go to work, take the deal club owners offer, and make it out of there with as much cash as possible. Unfortunately, the amount they wind up with can be pretty paltry.  More often than not, strippers work strictly for tips, which they are often required to share with bartenders, wait staff, house moms, managers, and DJs. In addition to that, dancers fork over a variety of fees to club owners, including stage fees, dance fees, or other house fees. Sometimes, fees are based on the degree of nudity achieved by the end of a performer’s act. Naturally, the dancers are considered independent contractors, meaning they are ineligible for sick leave, workers’ compensation, insurance, and other benefits. Overall, the finances of the business seem pretty shady in many cases.  

Strippers Lawsuit Emerges

A class action lawsuit was filed against Spearmint Rhino strip clubs claiming that dancers were being misclassified as independent contractors. The suit alleged that the law was being violated because strippers were not being paid minimum wage, and they were not even allowed to keep a significant portion of their tips. They were also responsible for purchasing their own wardrobes. Finally, dancers were never provided legally required wage statements.

The Settlement

Although the suit was brought in 2017 before AB5 was on the books, the plaintiff clearly saw the writing on the wall, and agreed to a settlement of $3.65 million. Here is how it was broken down:

• $10,000 to be divided between the four strippers who brought the original suit;
• $75,000 to the state’s Labor and Workforce Development Agency;
• Just over $900,000 for attorney’s fees;
• $2.6 million to be divided among all eligible class members who submit a claim.

In addition to the strippers financial payout, dancers have been reclassified as employees.

Tensions Over AB5

Despite the influence of AB5 in this case, there are many in the exotic dancing field who see the other side of the coin. They prefer the flexibility of being independent contractors and like choosing multiple clubs on the schedule that is convenient to them. Giving up their independence and having to be under the control of an employer is the last thing they want, and they said as much in a protest in front of Los Angeles City Hall.  [Read more…]