View Full Version : Entertainers lawsuit against club for loss of wages
Earl_the_Pearl
08-05-2009, 02:17 PM
A W2 paycheck was sent out for working there, based on 2/3 of minimum wage, and tips were to be reported, and a 1099 was sent out. Was this legal?
What did the 1099 show as compensation that differed from the W2? Both forms must be sent to the IRS.
KiwiStrawberry Splenda
08-05-2009, 06:19 PM
What did the 1099 show as compensation that differed from the W2? Both forms must be sent to the IRS.
W2 was for wages, 1099 for tips, similar to what they might do to certain waitstaff if the restaurant gets a lot of tips on credit cards. Other than that, one is supposed to self-report. Either way, I don't think it was illegal.
It got us a small paycheck at least. This was the 1990's. Now so many clubs are lazily and poorly run.
Earl_the_Pearl
08-05-2009, 06:49 PM
W2 was for wages, 1099 for tips, similar to what they might do to certain waitstaff if the restaurant gets a lot of tips on credit cards. Other than that, one is supposed to self-report. Either way, I don't think it was illegal.
The club did it that way so they could write off the portion of credit card sales that was tips. As long as you actually got the tips I don't see how else they could do it. Unless they call it a cash advance.
Otoki
08-06-2009, 07:03 AM
So the DANCERS who are the reason people go to drink there instead of "Joe's Crab Shack" or the "Drunken Clam" should be footed with the bil? Me thinks not.
Up the cover and the parking and let the PL's deal with it. Not the dancers. This particluar club I was talking about, the owner is most likely taking a pay cut right now but he treats his gals very well. That's why he has them lining up around the corner.
She just said that she's not taking the owner's side. She was being an accounting geek:D
KiwiStrawberry Splenda
08-06-2009, 02:00 PM
The club did it that way so they could write off the portion of credit card sales that was tips. As long as you actually got the tips I don't see how else they could do it. Unless they call it a cash advance.
Yes, we kept the tips. Wrote down an "amount" on a sign out sheet every night after the club closed. Obviously, most girls wrote in significantly less than they actually earned.
Things were a lot different in the 90's, and there is no reason why clubs can't go back to more efficient systems. If they want to schedule girls, take their monies, and require them to follow stringent rules, they can make them employees and pay them 1/2 to 2/3 minimum wage, like they do for waitresses.
Then they can 1099 for tips, using a combination of credit card sales receipts (most dancers are given a "dancer ID" upon hiring), and whatever the contractor chooses to report.
They don't have to offer benefits to the employees, but employer will then have to pay their part of FICA on the miniscule salaries. All in all, more money and time spent on accounting. Instead, they just break the law, relying on the ignorance of dancers, and intimidating them with fear against losing their jobs.
And there is no law against offering your IC healthcare, I believe. If the employer did the partial W2 thing, they could also offer the dancers a cafeteria plan, to help with daycare, which would be tax deductible to the employer and employee.
There are so many things that SC owners can do to make working conditions better all around, and retain top talent, no different than any other business. But they are greedy, lazy, and just do not care (for them most part, I have worked in some clubs that were professional and well run.)
Elvia
08-11-2009, 11:15 PM
Gia, you're not taking into account a few other expenses any general club would have:
Utilities - electric could possibly be a biggie, depending on your lighting and sound, signage, and kitchen, etc. It really depends, but you are still looking at a decent-sized bill per week/month/etc. Water isn't usually huge, but it could have a spike or something every now and then (one of my local clubs has a topless car wash attached - lol).
Kitchen - ( I know you accounted for the particular club you were referring to) some clubs have them, some do not - but a lot of the bigger chains do, so the kitchen has to turn numbers as well as pay the chef/cook, dishwasher; etc. You may have a separate dishwasher without a kitchen anyway, depending on your local health department codes. And/or a laundry service to do the towels/tablecloths/etc. Of course there are a lot of clubs that don't have this, but it is an increasing factor.
Food costs - kinda goes with above, but even if you're just doing some basics or even peanuts or popcorn or something cheesy, you gotta remember that - it all adds up.
Cleaning Crew & Supplies - do they book from outside or expect some employees to help? Do they pay one guy or a whole group? etc.
Replacement /Fixit Fund - I dunno the right term, but you have to budget in for things like new glasses/mugs/shot glasses; chairs or stools that get broken (if you don't have enough to replace already, god knows at Christie's we just piled them up until they absolutely HAD to re-order); if something breaks down like in the lighting and sound dept; register; computer; etc.
Bulk Merchandise order - sure, this probably doesn't end up much, because we have to sell the damned things for twice or three times how much they cost wholesale, but the owner does have to pony up that money to get the merch to the club in bulk.
Taxes/Lincensing Fees/Anything government-related - there are so many different ways in different cities and states of taxing and collecting fees. Sometimes it is yearly, sometimes bi-annually; and so on. Of course some only pay certain taxes once. And I'm not including the obvious; the taxes paid out of every paycheck that goes out for regular employees.
Lawyers on Retainer; Accountants for the Biz. - a smart owner has these.
Insurance for the Club - a requirement.
Insurance for Salaried Employees - some don't have this, some do of course.
I'm sure there are a lot of things I am missing. I'm certianly not taking the owner's side over a dancer's; I'm just trying to make sure the picture is a little clearer.
So what? All other businesses (restaurants, bars, etc) have such expenses. And they still have to manage to find a way to pay their employees, and do.
Almost Jaded
08-25-2009, 10:59 AM
As a multiple small business owner (partner anyway, lol), I can attest that Lildreamer is very much correct, those costs and many she didn't list are astronomical. The costs associated with having a single employee are insane.
But Elvia is correct. Every other business in the world has those same costs, and doesn't charge employees to work. Your house fees constitute another revenue source for the club, not another expense. Fucking with your fees and fining the dancers is tantamount to adjusting employees hourly wages in response to business fluctuations. While this does sometimes happen, it's with nothing like the frequency that clubs adjust dancers fees. And keep in mind - other businesses may have to adjust their OUTLAY for payroll, these guys are adjusting their INCOME from your gracing them with your presence. By keeping dancers as 1099's, they are saving themselves thousands of dollars per girl in payroll and unemployment taxes, health benefits - hell, hundreds or thousands a month just in payroll expenses themselves! And once more for the people in back - on top of all those savings (the prospect of which makes me as a business owner drool, lol), they MAKE MONEY WHEN YOU COME TO WORK!
There's a reason my partners and I want to open a club or two, lol. Forget the pretty girls and all that - when someone runs a SC as a real business run by professional business people, the results are fantastic. The few who have tried as far as I can tell got greedy or forgot what they were doing, cuz they eventually went the way of all the others...
FWIW, Ricks here in Vegas is BEGGING to be sued... They were (dunno if they still are) W2 employing girls and then charging them house rent and tips anyway, and not guaranteeing minimum wage. Their accountant and/or office staff - whoever came up with this and whoever let it fly - need to be shot. Twice.
BuxomBeauty
09-21-2009, 11:09 AM
The biggest problem we have is like Paris said earlier in the thread: as long as there are fresh crops of wide-eyed young girls beating down the doors to strip (thanks to MTV and other media making stripping look oh-so-cool and fabulous), we will never get anywhere with attempts at making clubs treat us fairly. Those of us who get pissed off and sue only make matters worse for the girls who remain in the industry after the lawsuits, because the clubs know there is an endless supply of newbies to exploit, and if the rest of us don't like it, we can lump it.
Put simply, as long as there are tons of baby strippers beating down the doors of strip clubs, we are ALL going to sit on the short end of the stick.
We were treated WAY better by clubs when it wasn't "cool" to be a stripper and clubs often had to actively recruit to get hot girls to dance. An experienced, attractive stripper who knew the business was considered a major asset to the club then. Now, experienced strippers are often considered a pain in the ass because we are aware of the ways they exploit us and are less willing to put up with it. Now, clubs don't give a shit and treat us accordingly because basically, strippers are a dime a dozen. We can thank MTV largely, and other mainstream media for this.
If we could get the media to bang on about the shit working conditions we put up with, things *might* change, because half the 18 year-olds in the western hemisphere wouldn't think it's so cool to be a stripper...
Elvia
09-24-2009, 08:43 PM
The biggest problem we have is like Paris said earlier in the thread: as long as there are fresh crops of wide-eyed young girls beating down the doors to strip (thanks to MTV and other media making stripping look oh-so-cool and fabulous), we will never get anywhere with attempts at making clubs treat us fairly. Those of us who get pissed off and sue only make matters worse for the girls who remain in the industry after the lawsuits, because the clubs know there is an endless supply of newbies to exploit, and if the rest of us don't like it, we can lump it.
I don't think this is true. That's exactly what labor laws are for. If we could eventually get to a place where the laws are changed- and enforced- then it wouldn't matter if there was a fresh crop of new girls willing to do more for less. The club would have to treat them the same.
And as for those who argue that the club will just make it harder on the other girls after a lawsuit and charge even more illegal fees- well, to that I say, sue their ass again! And again and again, until the clubs either have to play fair or go out of business.
I'm lucky enough to work in an environment that really not so bad. They give us a lot of freedom for being IC's, and there's no fee (just a 10% tipout to the bartender, who does a lot forus). I would never sue them, but if Iworked in one of these SF clubs that really takes advantage of the dancers, I'd sue them the second I hung up me heels.
Optimist
10-17-2009, 09:29 PM
I don't think this is true. That's exactly what labor laws are for. If we could eventually get to a place where the laws are changed- and enforced- then it wouldn't matter if there was a fresh crop of new girls willing to do more for less. The club would have to treat them the same.
And as for those who argue that the club will just make it harder on the other girls after a lawsuit and charge even more illegal fees- well, to that I say, sue their ass again! And again and again, until the clubs either have to play fair or go out of business.
I'm lucky enough to work in an environment that really not so bad. They give us a lot of freedom for being IC's, and there's no fee (just a 10% tipout to the bartender, who does a lot forus). I would never sue them, but if Iworked in one of these SF clubs that really takes advantage of the dancers, I'd sue them the second I hung up me heels.
Had there been a lot more girls suing in the 90s when they made the money to do it things could have been very different. Unfortunately. it didn't work out that way and now some clubs take criminal amounts of money.
Kellydancer
10-18-2009, 05:16 PM
Had there been a lot more girls suing in the 90s when they made the money to do it things could have been very different. Unfortunately. it didn't work out that way and now some clubs take criminal amounts of money.
Dancers put up with the abuse at some clubs then because the money was good. There was a club here that charged outrageous money (around $100 in 1993). On top of that they had a set schedule (including breaks). I thought it was wrong then (why I turned down the club) but many clubs were very fair. When I tell dancers today about a club where I paid $20 house (later increased to $30) and paying the DJ and bouncer $5 each, yet was making $300-$400 selling $5 bikini dances (later $10 topless) they are stunned. Then I'll tell them about some clubs actually paying dancers. Many of these clubs (the few that are still around) charge much more now and hire more dancers. I'm sure the one club that charged high then probably charges double now. There's really no reason to be charging that ridiculous amount. Back then you could just go to another club.
Like I said upthread I had no problem paying people who helped me, especially if they helped me sell dances or VIP rooms (called champagne rooms at most clubs). However I resented the clubs that charged ridiculous amounts. I knew a dancer who wanted to go after one of these clubs but none of the dancers would do it because they were scared. I wonder what would have happened had they sued them.
black_widow
11-11-2009, 02:59 PM
There's a class action lawsuit regarding the same wage issues here in LA right now. I posted a thread about it in this forum.
:))))