New York Strippers Win $10 Million In Back Wages

A slew of strippers in New York are in jubilant mood right now after hitting a jackpot of $10m.

The strippers who worked for Rick's Cabaret in Manhattan between 2005 and 2012 sued to be paid at least a minimum wage. A federal judge on Friday, November 14, ruled that the strippers be paid more than $10 million in back wages and tips.

The club's owner, Houston-based RCI Hospitality Holdings Inc., has however said it plans to appeal and continue "vigorously defending the allegations."

The dancers got no steady wages, instead paying a fee to the club to perform there and in return getting paid by customers. The customers put up $20 for each personal dance and fees starting at $100 for 15 minutes of entertainment in semi-private rooms.

“But after paying club fees and required tips to deejays and other club workers, the dancers sometimes ended up in the red,” the strip dancers’ lawyer, E. Michelle Drake, told the court.

The club argued the dancers were independent contractors. Club lawyers also said any wages due to the strippers should be offset by the money they made from customers, called performance fees.

U.S District Judge Paul Engelmayer however disagreed; and after ruling last year that the dancers were entitled to minimum wage, he found out on Friday that they were entitled to $10.8 million on certain claims.