By Jeffrey D. Slanker and Robert J. Sniffen, Sniffen & Spellman, P.A.
A Key West strip club was sued by its dancers in the U.S. District Court for the Southern District of Florida. The parties proposed a $1.2 million settlement. The settlement highlights the dangers of violations of the Fair Labor Standards Act (FLSA), a federal wage and hour law. This article explains a little about the case, the FLSA, and upcoming changes to the Act’s regulations and provides guidance on how to plan for the changes.
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Bare claims
The dancers alleged that they were employees, not independent contractors, because the strip club set their schedules, told them what they could wear, and instructed them how to perform. The dancers did not receive wages or a salary; instead, they worked for tips. The dancers claimed they were entitled to damages for the club’s alleged failure to pay minimum wage and overtime.
The club settled the matter for $1.2 million, with $295,000 paying for the dancers’ attorneys’ fees. The settlement details, which must be approved by a federal district court, reveal that missteps under the FLSA can be quite costly. Indeed, the owner of the club agreed to a seven-figure settlement.