NEW YORK — Exotic dancers working for Rick’s Cabaret in New York were awarded $10.9 million in their class action wage and overtime lawsuit recently. The New York federal judge presiding over their case found in their favor on a number of issues, including their contentions that Peregrine violated New York labor law and the Fair Labor Standards Act (FLSA). In his ruling, the judge also denied Peregrine’s motion to decertify the class, which would have prevented the dancers from continuing their claim collectively.
Claim In Motion
Originally filed in March 2009, the dancers alleged Peregrine Enterprises Inc., the operator of Rick’s Cabaret, misclassified the exotic dancers as independent contractors. The misclassification wrongfully denied the dancers minimum wage and overtime pay. By December 2009, the dancers received conditional class certification in their FLSA claim and a year later their state claim was certified. In September 2013, the court ruled the dancers were employees, not independent contractors. And in November 2013, the company was found to have violated the New York labor law. The November ruling resolved some of the issues between the parties, but did not resolve them all.
In the recent decision, the court addressed and rejected Peregrine’s claims that the “performance fees” dancers received from customers offset the company’s obligations to pay minimum wage. The recent decision is the result of the dancers’ request for summary judgment. The court felt that summary judgment was merited due the narrow scope of the dancers’ damages request. The dancers were only seeking damages for dates when Peregrine’s records clearly recorded and defined the hours the dancers worked. Because there was no factual question with the time records, summary judgment was granted.
Claim Going Forward
The court’s decision was a partial summary judgment. As such, there are still a few issues unresolved in the matter including whether Cabaret International Inc. and RCI Entertainment (New York) Inc., Peregrine’s parent companies, are considered joint employers and, therefore, liable for damages. There is also a question on whether or not the company’s actions were willful. If the company willfully violated the FLSA, the class members could potentially receive back pay and damages for as much as an additional year under FLSA requirements. In addition to the remaining questions, the partial nature of the summary judgment means Peregrine will not be required to pay the $10.9 million award until both the lawsuit and its appeal are resolved.
There are fairly narrow situations which allow employers to classify individuals as independent contractors. No two misclassification overtime claims take the same path, but if you believe you have been denied earned overtime wages contact our experienced team of overtime pay lawyers today. Our top-rated lawyers can evaluate your situation and discuss your options at (855) 754-2795. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.