Overtime Law: Are Strippers Independent Contractors?

Salisbury, MAWhen it comes to overtime pay there are certain people who are considered exempt under overtime pay laws. Those people can include independent contractors, who are not technically under the employ of a company. However, it is possible for people to be misclassified as independent contractors and therefore unfairly denied proper pay under overtime labor laws. That is exactly what women in Massachusetts say is happening to them.

The women in question are or were "exotic dancers" or strippers at a club called Ten's Show Club. They say that because of the bad economy, they are no longer making as much as they used to in tips and they are not paid any salary. Furthermore, according to an article in The Boston Globe, (September 18, 2009), the strippers are charged between $40 and $60 per shift to perform and are also charged fees for lateness or not performing in every dance routine.

The strippers have now filed a lawsuit alleging they were misclassified as independent contractors and were therefore denied proper wages and tips. As independent contractors, they would also not have been eligible to receive overtime pay or benefits. One of the plaintiffs, Noel Van Wagner, said, "I expect fair treatment in the work place, and I expect club owners to obey the law and conduct their business according to the law."

In fact, the strippers may already have the courts on their side. A ruling handed down July 30, 2009, found that the owner of a club called King Arthur's Lounge misclassified approximately 70 strippers as independent contractors. The judge in the case ruled that the plaintiffs in the case could proceed to trial to determine what damages they were eligible to recover.

Although King Arthur's had argued that its main business was the sale of alcohol and the strippers were simply extra entertainment, the judge ruled that the dancing was an "integral part of King Arthur's business."

"A court would need to be blind to human instinct to decide that live nude entertainment was equivalent to the wallpaper of routinely-televised matches, games, tournaments, and sports talk in such a place," the judge ruled. One lawyer for the plaintiffs equated the strippers to waiters, saying, "Imagine a restaurant where a waiter has to pay to come to work."

Also helping the strippers in these lawsuits is that Massachusetts has strict guidelines regarding independent contractors. This means that in Massachusetts even if someone has been classified as an independent contractor, if the person appears to be an employee, the courts will consider the person an employee, making that person eligible for proper wages, overtime pay and benefits.

Van Wagner and two other plaintiffs say that because the club's management controls their wardrobes and work schedules they are employees of the club and not independent contractors.