A Denver judge last week ruled that entertainers at strip clubs are workers protected by the city’s wage and employment laws, a ruling hailed by city regulators as a “significant win for worker protections in the adult entertainment industry.”
The twin rulings by Denver District Court Judge Jon J. Olafson on Nov. 20 upheld prior decisions by a city hearing officer that found Denver’s labor department had legal authority to investigate strip clubs for wage violations.
“Our office enforces wage theft laws for all industries and protects anyone performing work in Denver,” Denver Auditor Timothy M. O’Brien said in a statement. “Adult entertainment workers are no different, and we are pleased the courts agree.”
Denver Labor, in February, found Diamond Cabaret and Rick’s Cabaret “violated nearly every applicable provision” of the city’s minimum-wage laws, including misclassifying hundreds of entertainers as exempt from the ordinances; failing to pay staff the minimum wage; and stealing money from entertainers by requiring them to pay fees for the privilege of working.
City regulators ordered the clubs to pay nearly $14 million in restitution and penalties in a case Denver officials called “extraordinary” and unlike any other the city had ever conducted.
The strip clubs have fought back in the press and in the courts, accusing the government of disregarding legal boundaries, trampling on due process and “wielding subpoenas like weapons.”
The clubs argued entertainers are “licensees” — not employees, independent contractors or workers — and are not subject to Denver’s wage investigation. Olafson affirmed the hearing officer’s previous ruling that these entertainers are, in fact, workers and that Denver Labor has the legal right to enforce wage laws.
“The strip clubs have tried every tactic to avoid paying these workers properly and to dodge their wage responsibility. Even if it means creating new legal arguments that lack evidence or are contradictory,” Denver Labor Executive Director Matthew Fritz-Mauer said in a statement. “I’m thrilled the District Court recognized our legal authority to enforce sex workers’ rights. We remain steadfast in doing what’s right for all workers in Denver.”
The strips clubs, in a statement, said they have appealed these “erroneous rulings,” adding that the judges “failed to address key claims underlying Denver Labor’s illegal and unauthorized investigations.”
“The clubs are confident they are on the right side of the law and will continue to fight to protect their rights and the rights of their workers to work in Denver in the manner in which they choose,” the company said.
A federal lawsuit filed by the clubs in March against Denver Labor remains ongoing.
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