|
The damages cover unpaid wages and withheld gratuities
dancers employed at Rick's Cabaret, U.S. District Judge Paul
Engelmayer in Manhattan said. The action was brought on behalf
of some 2,000 dancers employed at the club - owned by Peregrine
Enterprises Inc, a unit of RCI Hospitality Holdings Inc - going
back to 2005.
The award is short of the $18.8 million in damages the dancers
sought, and the judge left the balance to be decided at a trial.
The date will be set shortly, the court order said.
In a September 2013 ruling, Engelmayer sided with the
plaintiffs, saying Rick's Cabaret exercised so much control over
the dancers that they were actually employees subject to the
club's rules and could not make independent decisions about
their work.
The strippers did not receive salaries, only tips and fees for
dances, usually $20, and payment for time spent with customers
in semi-private rooms. As employees, the judge found they are
entitled to mininum wage protections under federal law.
"We are looking forward to a trial," said Michelle Drake, an
attorney for the dancers, who said the plaintiffs could seek
more than the original damages they requested.
Among the issues the judge left for trial is whether RCI
Hospitality Holdings should be jointly held liable with
Peregrine Enterprises.
Shares in RCI Hospitality Holdings were down 0.44 percent to
$11.23 per share in mid-day trading.
"There is no current or near term obligation to pay any sums as
a result of this decision," RCI Hospitality said in a statement.
"The case will be appealed once final judgment is reached after
trial."
The women earn large sums of money at the club and the idea that
income is not counted towards wage obligations is "fundamentally
flawed," the statement said.
Strippers in other states have made similar claims. This month
the Nevada Supreme Court ruled topless dancers at the Sapphire
Gentlemen's Club on the Las Vegas strip were employees and also
deserved wages.
The case is Sabrina Hart et al v. Rick's Cabaret International
Inc., No. 09cv3043, U.S. District Court for the Southern
District of New York.
(Additional reporting by Nate Raymond; Editing by Alexia
Garamfalvi and David Gregorio)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
