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November 24, 2009

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Topless club hit with lawsuit over dancer wages

Tuesday, Nov. 3, 2009 | 2:10 a.m.

Sun Coverage

A topless nightclub in Las Vegas was hit with a class-action lawsuit Monday claiming its dancers aren't really independent contractors -- and instead are employees entitled to regular wages and overtime.

The suit against Sapphire Gentleman's Club follows a ruling by the Nevada Supreme Court last year allowing a similar class-action lawsuit against another topless club to proceed under state law claims.

Monday's suit was filed in Clark County District Court on behalf of dancer Zuri-Kinshasa Maria Terry by lawyers including Robert Starr of Woodland Hills, Calif., who has a Web site called exoticdancerrights.com.

Also involved in the suit is Tucson attorney Mick Rusing, who was involved in the case resulting in last year's Supreme Court decision. Local lawyers involved in Monday's case are Thomas Christensen and Ryan Anderson of the Christensen Law office.

If certified as a class-action, the lawsuit says it could represent some 5,000 Sapphire dancers, including current and future dancers as well as those who danced at the club full or part-time during the past two years.

Sapphire bills itself as the world's largest gentlemen's club with some 400 dancers nightly.

While independent contractor arrangements are the standard practice in the industry, the lawsuit claims Sapphire has so many rules governing the dancers' working conditions that they don't qualify as independent contractors.

Dancers, for instance, are required to work a minimum number of hours -- six or longer -- per shift, the suit claims. It says they are prohibited from leaving the premises during their shift, can't leave with customers, can't date or socialize with customers during their off hours and must entertain customers "according to means and methods prescribed by" management.

They must pay club managers and employees for the right to work at the club, charge minimum fixed fees for table and lap dances, promote sales of alcohol and other drinks, accept offers of drinks from customers, appear on stage to dance at fixed times, comply with a dress code and wear approved costumes and uniforms, the suit charges.

Failure to follow the rules will result in suspension or termination, the lawsuit charges.

"Such rules and regulations and control over the means and methods of dance and conditions of employment are not of the type imposed upon independent contractors," charges the suit, which seeks back pay for the affected dancers and an order requiring the club to comply with Nevada wage and overtime requirements.

Shai Cohen, marketing director of the club, had no immediate comment on the suit Monday night.

Last year's Supreme Court ruling came in a case dating to 1997 that over the years involved clubs including Cheetah's, the Crazy Horse Too, What's Up, Olympic Gardens, Little Darlings and the Girls of Glitter Gulch.

In a ruling titled Jane Roe Dancer I-VII vs. Golden Coin Ltd., doing business as Girls of Glitter Gulch, the court ruled Rusing could proceed with a class-action under state law claims.

The court rejected the defendants' argument that class-action minimum wage claims should be considered under the Federal Fair Labor Standards Act rather than the Nevada Wage and Hour Law.

Nevada's higher minimum wage legislation with its extra protections for worker wages is the appropriate law governing the dispute, the court said.

The different laws are important in the case because the federal law permits an employer to credit an employee's tips against the federal minimum wage, while the Nevada law prohibits such offsets, the court said.

The parties agreed to the dismissal of the Girls of Glitter Gulch case after last year's Supreme Court ruling -- but Rusing is back with similar claims against the industry with the suit Monday against Sapphire.

Discussion: 35 comments so far…

  1. I think he would win in if we lived in fanasty land but we live in the real world.

    In the real world, strip clubs in the Valley generate over a billion in revenue.

    Industries with that type of money know how to grease the judical wheels of justice and of course they are not limited by any morals to prevent them from doing so.

    He does not have any chance to win even if the law and facts are on his side.

    I am not sure why he is even trying.

  2. This is another example of attorneys making money and bringing a class action suit with the attorneys making the lions share of any awards or settlements. It is so obvious that it continues to be one of many reasons why attorneys are so poorly thought of. The dancers, if there is a ruling in their favor, will receive a small pittance. As far as dancers leaving the premises, dating customers, entertaining or dancing according to prescribed methods...these are mandated by Metro and eliminate any hint of improprieties or questions regarding soliciting for prostitution. When you mix liquor and partially naked women, there must be rules. Do the math...5000 or more dancers times minimum wage times forty hours per week times two years...this should answer anyone's questions about attorneys and their motivations.

  3. Legalize prostitution and this type of lawsuit goes away. The end result is still attained, drinks, half naked people, money exchanging from the consumer to the business.

    Men for the most part go to these clubs with the expectation of getting lucky and the dancers are there maximize their income; it's a win / win for all parties, the owner is paid, taxes are generated, dancers are compensated for services rendered, and the consumer is happy.

    If you have any doubt look on the sex trade sites in your community, go to craigslist, myredbook, lasvegasescorts, etc" most of the people are providing services and no taxes are received.

  4. Most of the rules enforced by Las Vegas strip clubs are to comply with Metro,that is true.The problem of over regulation of independent contractors begins when novice management tries to run the club like General Motors.In theory their rules work.Realistically it's just some moron who makes rules because he doesn't have the business acumen to do the reaearch to see if what he is doing is legal.Money doesn't make you smarter.Businesses should be run by businessmen.If you don't know what your doing,hire someone who does.The strip club industry for the most part is run by amateurs. In this economy only the strong will survive.Every time management makes A mistake,there's one more nail in the clubs coffin.

  5. Recession or no recession , these girlies still make big bucks (if they are pretty enough) I'm afraid I don't feel much sympathy for those dancers involved in this class action. Besides they took a lot of my slot winnings over the years!! LOL!

  6. If the dancers do not make more than minimum wage they need to find a new line of work.

  7. Ruse is a HACK lawyer and should get of town, any dancer making money doesn't want their independent contractor status changed, a couple added benefits just isn't worth it.

    Ruse is trying to exploit older less productive dancers and get as much CASH as possible, Ruse should go back to ambulance chasing.

    I'm thinking that Ruse got his law degree from some mail order catalog.

  8. If they're going to pay the dancers an hourly wage - it should be higher than the minimum wage!

  9. The point of the lawsuit stems from the fact that Sapphires keeps 400 women scheduled to work even when its slow and require that these women pay Sapphires to be there, instead of Sapphires paying these women to be there. Although it varies from club to club these dancers may be paying $200 to show up for work only to find there are no customers to serve. I am not defending the dancers or siding with Sapphires but there seems to be a problem with some women haveing anyone to entertain in this 'largest men's club' on the planet and being required to show up for work and pay to sit around dressing up the business.

  10. If I was on either side of this situation, I'd be much more concerned about IRS scrutiny than the lawsuit. The IRS can -- and will -- severely penalize both sides for taking advantage of 1099 status if it does not exist.

  11. Just think, if they are accepted as hourly employees, they will be eligible for unemployment and money for "job displacement" retraining when they get older.

    :)

  12. I had a neighbor who worked there. She bought home an enormous amount of tips (non-declared) that would even make a Lawyer smile.

  13. They're definitely NOT INDEPENDENT CONTRACTORS. That's just so the scumbag owners don't have to pay them wages.

  14. In response to "lastword":
    The attoney's actual name is RUSING and he is an honors graduate of Stanford Law and recognized as one of the PREEMINENT trial lawyers in Arizona and if you want accurate information regarding his credentials (versus your distorted perception) you are most welcome to check out his firm's website at: RUSINGANDLOPEZ.COM

  15. My gf worked there for a little while... LEts bring all the fantasy cliche u might have: strippers are beautiful but have a lot of issue or this work create a lot of them, i loved her but relationship with a dancer are ahrd to make work.

    Lets clarify a few points:
    -A dancer does not pay at sapphire tipout on monday night footbal if she checks in early
    -A dancer pays roughly 125 tipout (right to work) weekday
    -A dancer pays roughly 150 on saturday and friday
    -If a custoemr aka a Pig uses his credit card the girl pays 15% to the house and the custoemr too so if i sepdn 100 buck she gets 85 and i pay 115 (ripoff of course
    -yes there is a recession, btu eys dances still amke good money< If u go on bloomber and type strip club u will see a dancer article from last eyar at the same point in 08 saying she makes 20% percent less than before , likely 30 now
    -dont forget its reallys low during the week, yes some girls, might still good bucks but not all the time liek 3 or 4 years ago: there are more girls, less money on average and higher expectations from the clients
    -lastly and surprisnigly its not always the prettiest girl that makes the most, naughties yes, also soemtimes guy tend to go for the girl next door, girl they think they could "score with"
    -on average id say a girl make 400 anight weekly,700 weekend whcih is dont get me wrong like 8.5k monthly and like 6 k after tipout but its less than before and strippers are terrible with money ...

    Again im not taking anyone's side, just trying to share waht i know about a world who is often borderline with prostitution (no i did not say strippers were prostitute:)

    take care

  16. Of all the strip clubs that I take friends to when they come to town to visit, I refuse to take them to Sapphires. I work on The Strip and also never recommend Sapphires to anyone who asks. The dancers there are WAAYYY too pushy. You walk in the door and you havent even gotten a damn drink yet and they are all over you like vultures.

    Let me sit down, get a drink, scope the place out first for Christs sake. I always buy several lap dances once I relax a bit but I refuse to be "talked into one."

  17. I dance at Sapphires, have for many years. They treat their dancers on average better than any of the other top competing clubs in Vegas. With that said, they also treat their dancers as if they are just as disposable and replaceable as every other club does. There are tens of thousands of girls coming to dance in Vegas every year, and pretty much every one of them would happily take my job if I was terminated for standing up and defending myself. The squeaky wheel gets the axe in this business. And for you who think women in our industry make hand over fist, my earnings are down more than 50% over this time last year (and I thought last year was bad). The bad economy has made many dancers more aggressive, both in their sale technique and in their lapdances. With our income slipping, the prices of stage fees have remained the highest in the city, and yet more women than ever are flocking to the business, or returning after losing their wage paying jobs. The club has more women in it than man most nights of the week, and most hours of each night. That means one thing: there are nights were many of the girls are going to walk out of the club with less money than they walked in with. It's unavoidable and it doesn't happen to only the older/fatter/uglier girls. It happens to ALL OF US.
    I can still make a living at dancing at Sapphires, and I can still continue to pay my tuition at UNLV, but in the meantime Sapphires charges $12 for a beer, and requires higher drink minimums than any other club for VIP customers, as well as the highest stage fee in town. And when a dancer rubs them the wrong way, with a word or a glance, they throw them into the street without a moments notice. They don't care how these single mothers pay rent, how these students make their tuition payments, if in a few weeks this "contract employee" loses their home or their car. We can't file unemployment, because we aren't EMPLOYEES! It doesn't matter that I have paid 100% of my own social security tax for the last few years, because I'm under 30 and healthy and capable of finding a job in the 14% unemployment city!?!? Be realistic, these women are making those men filthy rich, with no safeguards for our own welfare.

  18. What makes you think this is just in the Stripper industry. This "independent contractor" junk (so the owner gets around workers comp, benefits and social security payments) is RIFE in southern Nevada in small to midsized businesses.

    Owners will specify all kinds of "work rules", start/stop times, etc and demand their "hires" sign a "contract" or a "waiver" then refuse to supply a copy of it because "it cost too much to have drawn up" and tell you "I don't want my competitors to get their hands on this thing".

    No sign. No job.

    Complain, and no job.

    Demand signed copy, no job.

    And the owner of the company gets political cover 'cause they're a "campaign donator" to the elected ilk we have/had.

    A perfect "mobster" scam since, sans electronically linked gamblin' joints, Nevada is still essentially in the employment stone age.

  19. Welcome the the labor market and free enterprise system.

    When times are good, lots of money is made and no one wants to pay more taxes such as say unemployement insurance when the money is rolling in. Let alone accept a lower hourly wage.

    People who work for "lower" hourly wages, do so in order to enjoy cetain negotiated benefits. Unemployment, health insurance, retirement are just a few of those.

    Real Estate Agents are kind of under the same wage structure and job requirements as a dancer. When times are good, they make money hand over fist. When times are bad, they wish they would have managed their money better when they had more of it. But, they don't go after the Real Estate Office over a perceived injustice.

    So really, what would a dancer be willing to give up to accept and hourly wage? Be careful what you wish for, you may get it. Right now the businesses are strong. Does anyone think this is the best time to negotiate?

    I hope that I have not offended any dancers by comparing them to Real Estate Agents.

  20. I believe that with all the new "Adult lounges" that have come into existence in Las Vegas in the past 10 yrs, that it isn't really rocket science that the powers that be never meant for that industry to be any more than a "bump and run", meaning,.. put together a game plan and time frame of money one needs to earn for school tuition, morgage, car payment,etc., etc., and then go do something else normal with your life, maybe,maybe dipping back in every once in a blue moon when your strapped for cash,but once one thinks they need to make a career outta pole dancing, you just became your own worse enemy, and make yourself victim to industry policy, whether you like them or disagree with them...
    In other words, club management isn't really interested in having you as a regular "employee" or a career "independant contractor" in their establishment,they have a slew of new talent coming here from all over the world and they like it that way, keeping the entertainment fresh.

  21. UNLVLADY : You sound like you are reaching for some kind of more progressive life for yourself by being in college, however I must say that you didn't have to choose this particular way to make money. It's a choice that you made because at one point it payed off like gang busters for many years until this recent downturn in the economy. So all I can tell you is keep dancin, don't make waves for yourself, and finish your education, and you'll be free of it eventually..

  22. Wizard;
    You are right. The "Independent Contractor" bit
    is another major way the middle-class have taken a huge hit in the good old USA.
    When will middle-class America WAKE UP and collectively take measures to defend themselves? After all, we do have the majority of votes; It must be that all the MONEY has beome even more concentrated at the TOP. The Tip-Top. And THOSE folks do not want to get off that perch. Vultures.

  23. "I hope that I have not offended any dancers by comparing them to Real Estate Agents."

    Best. Line. Ever.

  24. Mormon lawyers suing on behalf of the whores against the pimping clubs...priceless.

  25. Here is the situation. Laws have been put in place by the public, either through elections, or through elected officials. Companies and people are required to follow the law. If a company fails to follow the law, and as a result, they take something that they are not entitled to take, then there is a process for suing them, in order to force them to give back the thing that they have taken. You can take digs at lawyers, plaintiffs, or defendants, but what it all really comes down to is that if people follow the law, they have nothing to fear. If they fail to follow the law, then they are vulnerable to financial attack. That, nothing more and nothing less, is what this, and every lawsuit is about. Whoever makes personal attacks by calling attorneys morons, calling dancers whores, or calling club owners pimps needs to simply grow up. Lets not be childish.

  26. strippers make 4X the amount of money i make in larger popular clubs like rhino, treasures and sapphires. suing for what? making 10K a month??? get over yourselves..

  27. Moron is not even on the list of words, for lawyer that was in my mind .....

    Based on the information in this article, there is little basis for a case, the plaintiff(s) and her attorneys are reaching at best and at least extorting for a settlement. Because they may win in a long protracted battle.

    If it was up for a vote from the majority of taxpayers, they would not want to waste their money paying for judges, clerks, sherrifs, court clerks, lights, heating and air conditioning, etc. for a lawsuit that is really only going to line an attorney's pockets.

    Feed the machine.

  28. Its called save your money when times are good,and then live off those same saveings when times are tough!I have seen the cars the ladies drive,and how they live.If you have chosen this life then you go with the ups and downs.And if you really need to go see a stripper and your married i do have a thought for ya?Go buy your wife some stripper clothes and have her dance infront of you.Atleast you know where your money will be going,and it may add to the fun of the night?

  29. Wow!! It's tough Out There for Even Strippers. Hopefully, the economy will recover soon and we can ALL Return to The Strip Club for some fun. But until, I'm okay with paying them a salary.

  30. Wow ! If she wins, does that mean we no longer feel obligated to tip. And wont all customers get the same quality of service without tipping ? Way to go !

  31. Hookers, Strippers, can't wait till tommorrow see if Sun does a report on Wife swapping.

  32. In 1994 a bunch of us went to the Palomino in N Las Vegas. My first and last trip to a place like that. The girls start out naked. No seduction, no allure. Just bare naked ladies. It cost 20 dollars to get in and you got 2 beers with that. Before I drank the first beer I saw everything that girl had including her liver. What a disgusting exhibition. Considering the time they have to show themselves like that , maybe 15 years at most before gravity takes over, I think it is a shame that people cheat them out of their money.

  33. geez just because somebody claims something on their own website doesn't make it true, regardless Stanford law is bottom of the barrel (I went to Cal). I actually have communicated with Rusing about this matter and he scoffed at my suggestion that he donate his proceeds from any litigation. He's doing this for the bucks pure and simple.

    preeminent huh? by whom? what are you his publicist.

  34. I'm not a big fan of strip clubs, however a couple of times I visited that joint across the street from the Hard Rock on Paradise, and I must say I saw some of the most beautiful girls I have ever seen in my life in that joint! That said, It was an expensive evening on both occasions, and that kind of money at least has a better return if you lay it down on the crap table, or even in the slots (in those days anyway) So sorry girlies good luck!

  35. I've stripped for 13 years, in Vegas and Texas (and was a Realtor for 9 years so, Destruct, good one!).

    FYI, stripper income is down on average by half or more, all across the country, and in many cities we make 25% what we made 2 years ago. Even the hottest girls in the biggest clubs are struggling to make a livable income. We have no benefits, we pay to work and most of us have to quit after 10 or so years with a huge hole in our resume and stigma that follows us our entire lives (thanks for that bit, by the way).

    A little less judgment and a little more compassion and understanding would go a long way. Not to mention support in getting filthy rich club owners to obey the law. You may hate the industry but I'm assuming most of you like having a legal system support worker's rights.

    If you really want to know more about the work, I blog at: www.MyDancerDiary.com

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