Court rule Ricks to Strippers over 10 million

http://www.ksat.com/content/pns/ksat...edium=facebook

Wow. Just wait until they demand healthcare, 401K, on-site daycare, stock options.

Rulings are one thing, collecting another.

Pole tax plus this new costs that will be pushed down to patrons to pay. Another reason to continue seeing ECCIE girls.

Honestly, I think the SC's will just start charging more for stage fees....so it will all come out in the wash.

Interesting and just a couple of points (of law and order and IRS rules):

First off, the jurisdiction of the one NY Federal judge goes nowhere outside NY, but, of course, his judgement could be used as the basis for a suit in other districts. More importantly, the ruling on strippers as "employees" which, again, extends nowhere else, but could definitely be a sticking point in suits in other jurisdictions.

imo, if Ricks' "employees" are working more than 30 hours a week, they are per the IRS rules (and the ACA) owed health care coverage, and, for longer than 8 hour shifts, overtime, and probably also workmen's comp in case of injury.

Recall that Rick's is a national corporation, listed on the NY stock exchange. So who knows what kind of an appeal or an appellate outcome might happen down the line.

j/s

excellent points CK

Recall that Rick's is a national corporation, listed on the NY stock exchange. So who knows what kind of an appeal or an appellate outcome might happen down the line.

j/s Originally Posted by ck1942

I think a lot of the larger operators across the country will begin to come together and create a legal defense fund of sort and adopt a strategy to fight these cases on a united front.

The success of the one case could set off similar suits across the country.

Then there are the state and federal income tax ramifications. With the clubs taking the position that all these independent contractors are making more money than minimum wage there is a hell of a lot uncollected tax revenue in the mix right?

1 city.... 1 club.... a $10mil judgement?

There are over a billion dollars in possible reallocation of the clubs profits up for grabs if it grows.....

There was a similar ruling in Arkansas a few years ago where clubs charging dancers stage fees and tip outs violated state workers compensation laws. The clubs tried to worm their way out by saying the dancers were not full time employees but contract labor. The judge ruled the dancers were in fact employees of the club and ruled in their favor and ordered the clubs to pay back all fees and tip outs. One dancer I knew at the time got 27K.
He also ordered an audit to determine how much each club would have to pay in back income tax contributions.
The owners threatened to go bankrupt before paying but were told they would either pay or face jail time for violating state labor laws as well as tax evasion.

What about the tax ramifications for the strippers?

There is no doubt they will have to pay up on back taxes,Uncle Sam is gonna get his too. However I believe the dancer told me that part of the judgement awarded covered penalties and interest they would have to pay in.

Rulings are one thing, collecting another. Originally Posted by rockerrick

+1

(Kinda like child support)