ATLANTA — The misclassification of employees is a fair labor standards issue that continues to be litigated in state and federal courts, which highlights why it remains a top priority for labor enforcement agencies. One of the latest is a suit brought by a group of dancers against a Miami strip club company, the King of Diamonds club, and its parent company, Galardi South Enterprises consulting, Inc., along with various executives and managers. At the heart of the dancers’ claims is that they were mischaracterized as independent contractors and, therefore, were denied due wages and overtime pay. This is not the first time Galardi has been held liable for misclassification: in 2012, a Georgia federal judge approved a $1.55 million class settlement for 73 dancers in Atlanta.
Misclassified Employees
According to the lawsuit, the company controls the conduct of the dancers onstage, requires them to wear particular attire, and forces them to attend unpaid staff meetings. These factors support the conclusion that they are actually employees and not independent contractors. The company also allegedly charges the dancers stage fees of seventy-five to five hundred dollars and are fined for not showing up for scheduled shifts. Additionally, the dancers allege that the security staff and managers collect and distribute their tips without any form of accounting.
Galardi apparently argued that the dancers’ employment agreements served as evidence of their independent contractor status. The dancers attested in their document that they were skilled in the discipline of dance; however, the court found this argument unpersuasive in determining whether they were classified properly.
Class Certification
The case was filed by the dancers as a class action lawsuit, and the company argued that the court should decertify the class because the individual dancers’ duties, schedules, and earnings potential varied too much and that some dancers were disciplined or fined by management. Based on all of the above, the company argued that the court should consider the claims on an individual basis.
The court disagreed and stated that in is unlikely that any real-world class action would include individuals with the same schedule and earnings, and that the differences identified by the company doesn’t really impact their certification as a class. The dancers still performed substantially the same job in the same location, regardless of the differences in earning potential. Additionally, all the alleged wage violations happened during the time all the class members were working for the company.
If you believe that your employer is not properly paying you for the hours you work, including any overtime, because you are misclassified as an independent contractor, you may have a claim under the Fair Labor Standards Act (FLSA). Our knowledgeable team of fair labor standards lawyers can be reached at (855) 754-2795. You may also complete our Free Unpaid Overtime Case Review form and our legal team will evaluate your claim. 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. Time is limited for filing wage and overtime complaints so it is important to call today!