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Washington Park dancers allege club owners violate wage laws with mandatory kickbacks, taking portions of tips

MADISON - ST. CLAIR RECORD

Thursday, November 21, 2024

Washington Park dancers allege club owners violate wage laws with mandatory kickbacks, taking portions of tips

Lawsuits
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EAST ST. LOUIS – Former dancers at two clubs on Bunkum Road in Washington Park claim owners and managers violated wage laws by classifying them as contractors and taking portions of their tips.

Ursula Moffitt and Kristen White sued Scarlett’s Cabaret on March 30 and Isis Jones sued Miss Kitty’s on April 24.

Their counsel, Athena Herman of Peoria, proposed class actions under state and federal laws.

She claimed Moffitt and White filed for arbitration of their complaints in November pursuant to agreements Scarlett’s required them to sign.

She added that Scarlett’s refused to pay its portion of the fees and refused to participate, resulting in dismissal of both complaints.

The American Arbitration Association allegedly entered an order declining to administer any future matter involving Scarlett’s.

Herman’s complaints otherwise contained similar allegations except for the amounts her clients claimed they had to deliver to their employers.

Moffitt and White claimed they paid Scarlett’s owners or managers a mandatory kickback of $45 to $100 for each shift.

They claimed they paid the owners $20 for each “booth dance,” $75 for each “conversation room dance,” and $400 for each “bit room dance.”

They added that they paid the owners up to 40% of tips they received from customers who tipped through credit cards.

They also claimed the owners assigned a mandatory portion of tips at $30 to $60 per shift for the manager and $10 to $20 each for a DJ, a “house mom,” and security.

Jones claimed she paid Miss Kitty’s owners or managers $45 or more per shift.

She claimed Miss Kitty’s required her to assign a portion of her tips, including $20 for each private dance, $175 for each “VIP dance,” and $20 for a DJ.

She added that she paid a “door guy” $10 per shift and $20 per VIP dance.

Both complaints alleged that failing to pay minimum wage and subjecting dancers to kickbacks and deductions arose from misclassifying them as contractors.

Herman alleged violation of Illinois minimum wage law, Illinois wage payment law, and federal law on labor standards.

She proposed to certify classes under all three laws for periods starting in 2020 for claims under state law and 2013 for claims under federal law.

She identified White and Jones as Illinois residents and Moffitt as a Missouri resident.

Herman stated that Scarlett’s employed White from 2017 through last July, and Moffitt from 2015 through last October.

She stated Miss Kitty’s employed Jones from 2015 through March 10, 2023.

She claimed both clubs employed more than 100 exotic dancers since 2013.

Herman alleged dancers customarily performed three to six shifts per week for an average total of 20 to 40 hours per week.

She claimed their hours were subject to the selection and discretion of owners and managers.

She added that they only received compensation in the form of tips paid directly from customers.

Herman claimed federal and state laws required defendants to pay an hourly rate at least equal to the minimum wage, free and clear of kickbacks and deductions.

She also claimed the laws required defendants to allow proposed class members to keep all tips.

Herman sought an award for the plaintiffs of all wages due and owing and all wages and tips unlawfully deducted, taken, or assigned.

She also sought an award of statutory liquidated damages and interest.

The court clerk randomly assigned Magistrate Judge Reona Daly to the complaint against Scarlett’s and Magistrate Judge Mark Beatty to the complaint against Miss Kitty’s.

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