South Carolina Strip Club Hit with FLSA Class Action Lawsuit

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Plaintiff Alexis DeGidio has filed a class action lawsuit against Crazy Horse Saloon and Restaurant Inc., which owns and operates Thee New Dollhouse, claiming that the company violated the Fair Labor Standards Act (FLSA) and the South Carolina Payment of Wages Act.

According to DeGidio’s FLSA class action lawsuit, Dollhouse improperly classified its exotic dancers as “independent contractors” in order to avoid paying minimum wage and overtime payments in violation of the FLSA. She also claims that the company improperly collected some of the dancers’ tips.

The plaintiff filed the class action lawsuit on behalf of all “current and former Dancers who have worked for Defendant in the state of South Carolina during the statutory period covered by this Complaint.” She claims that the Class Members are entitled to recover their unpaid minimum wages, unpaid overtime wages and liquidated damages.

DeGidio alleges in the wage and hour class action lawsuit that exotic dancers work in an “unorganized” industry and are “disenfranchised” due to a lack of bargaining power between the dancers and club owners. Over the last 20 years, the U.S. Department of Labor (DOL) has recognized that exotic dancers are employees and are entitled to legal protection under federal and state wage and hour laws. DeGidio says that despite this legal protection, adult night clubs across the country continue to deny their employees the protections they are legally obligated to provide.

Not only does Dollhouse fail to pay their dancers minimum wage or overtime, the company also requires them to pay “House Fees” for each shift they work, DeGidio alleges. According to the class action lawsuit, the “House Fees” range from $25 to $100 per shift. These fees are charged without providing advance notice to the dancers. Dollhouse also has a mandatory tip out policy that requires the dancers to give a portion of their tips to the House Mom, Floor Host, disc jockey and valet attendant.

Further, DeGidio alleges that Dollhouse regularly retained a portion of the tips that the dancers received from the club’s customers. Under the DOL’s regulations, an employer has no ownership of any tips that customers give to employees. DeGidio also alleges that Dollhouse sets the prices that employees charge for private dances, but requires the dancer to pay Dollhouse a portion of that fee. “As a result, customers who believe that they are tipping Dancers a certain amount are actually tipping them less, due to the aforementioned deductions taken by Defendant,” the class action lawsuit says.

The wage and hour class action lawsuit asserts that Dollhouse experienced unjust enrichment as a result of its regular violations of state and federal law. DeGidio is seeking injunctive relief, an award of unpaid minimum wages, an award of unpaid overtime wages, restitution, liquidated damages, attorneys’ fees and other damages.

The case is Alexis DeGidio, et al. v. Crazy Horse Saloon and Restaurant Inc., d/b/a Thee New Dollhouse, Case No. 4:13-cv-02136-RBH, in the U.S. District Court for the District of South Carolina, Florence Division.

If your employer failed to pay you minimum wage or overtime, you may have a legal claim under the FLSA. To learn more about your rights, visit the Wage & Hour, Unpaid Overtime Class Action Lawsuit Investigation. When you fill out the short form, an FLSA attorney will conduct a free case review to find out if you qualify to take legal action.