Last month, an exotic dancer filed a lawsuit against T’s Lounge, claiming that the strip club misclassified her job status as independent contractor. She contends she is an employee.

The difference is huge, when it comes to job benefits and protections. The Federal Labor Standards Act grants employees minimum wage and overtime pay, for example, and requires employers to cover them for workers’ compensation and employment taxes.

The dancer, Lorraine Calway, says that she was misclassified as an independent contractor for six years, and says that other dancers also have been cheated for the same reason.

As independent contractors, T’s Lounge dancers are paid only what customers tip (“fee for service”); they receive no wages from the business. An eight-hour shift, the lawsuit claims, sometimes resulted in compensation for Calway of nothing to $50.

As a strip club, T’s Lounge is not unusual in its pay policy. Recent court rulings have supported other dancers’ claim of misclassification. A federal court in New York ruled that a cabaret for years had been improperly classifying its dancers as independent contractors while treating them as closely supervised employees. Another federal court agreed that dancers for a nightclub in Atlanta also were employees, not independent contractors.

The difference between classifications hinges on how much freedom and control the worker has regarding such things as setting hours, equipment/costumes, attending meetings, etc.

Calway’s lawsuit specifies the control the club has over the dancers that supports their status as employees. They’re required to pay fees each shift to the house, the disc jockey and the bouncers. They’re required to wear high heels. They’re fined for being late or leaving early. They’re not permitted meal or rest breaks or time to sit. Their schedules and conduct are defined by the club.

If successful, Calway’s lawsuit could award her three years’ of back wages, and invite other dancers to make similar claims.

Read the whole story on The Palm Beach Post.