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Settlement Reached in Magic City Dancers FLSA Class Action Lawsuit

This is a settlement for the Employment lawsuit.

Santa Clara, CA: A settlement has been reached in an employment lawsuit brought by exotic dancers who worked at the Atlanta strip club Magic City, claiming the club owners violated the Fair Labor Standards Act (FLSA). The suit was scheduled to go to trial on January 17th.

The lawsuit was first brought in 2013, alleging M-Entertainment Properties LLC, which does business as Magic City, of misclassifying the dancers as independent contractors and failing to pay them wages, in violation of the FLSA.

According to court documents, the defendants charged the dancer to work at Magic. House fees to perform and other fines imposed for late arrivals and failing to meet performance standards were part of the club’s operations, according to the dancers. They were also expected to tip out house moms and other workers at the end of the night, meaning they were not given a full tip, the suit states.

“Because defendant directly controls entertainers, it is aware that entertainers work as employees in fact; yet, defendant still fails to classify entertainers as employees under federal law,” the complaint states. “Defendant’s failure to pay entertainers prescribed wages is willful and recklessness, in part, because defendant knows it treats entertainers as employees in fact.”

Settlement terms, both monetary and otherwise, have yet to be officially agreed upon, according to the documents.

The case is Vaughan v. M-Entertainment Properties LLC, case number 1:14-cv-00914-SCJ, in the U.S. District Court for the Northern District of Georgia, Atlanta Division.

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Published on Jan-16-17


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I have a case against my employer for misclassification, violation of the FLSA. There's a lot more involved regarding my personal case. I prefer to speak to a lawyer before discussing the matter any further. I'm trying to set up a consultation immediately. Thank you.


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