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Strip Clubs Face Class Action Over Employee Classification

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Springfield, MA: Several exotic dancers, two bartenders and two disc jockeys who worked for Mardi Gras Entertainment Inc, have filed a class action lawsuit against the company and three of its corporate officers, alleging that they were denied standard worker benefits, including salaries.

Three of the plaintiffs in the suit allege that they worked as full time employees but were classified as independent contractors so the owners could avoid paying benefits including overtime and wages, and that the "independent contractor" label given to most employees at the clubs fails under fair labor practices law.

Additionally, the dancers were expected to pay between $40 and $100 per shift to the club owners, in what is known as a "tip-out-fee." The better the shift, the higher the tip-out-fees. Similarly, the bartenders allege that while they were paid minimum wage they were expected to pay a $25 "house fee" fee per shift, which could, depending on the shift, reduce their hourly wage to below that of the minimum allowed.

Counsel for the plaintiffs believes that there could be hundreds of dancers who worked at the five clubs owned by Mardi Gras Entertainment.

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