Texas Strip Club Defeats Dancer Employee Misclassification Suit

A Texas strip club won’t have to pay back wages and overtime to exotic dancers who allege they were misclassified as independent contractors, after the Fifth Circuit found Friday the evidence supports the jury’s finding that the dancers weren’t employees.

The plaintiffs danced for Texas Sugars Inc., which does business as Moments, and were compensated exclusively through tips.

The suit alleged the club misclassified the women as independent contractors because Moments hired, fired and supervised them. It also set their schedule, and controlled the details of their jobs, including setting the prices customers were charged for dances and how long ...