BENTON - Scarlett’s Cabaret in Washington Park and its exotic dancers settled a class action complaint alleging violation of state wage laws and national labor law.
Athena Herman of Peoria, counsel to dancers Ursula Moffitt and Kristen White, notified U.S. Magistrate Judge Reona Daly of the settlement on July 12.
Moffitt and White sued Scarlett’s in March 2023, claiming its wage violations arose from classifying dancers as contractors rather than employees.
Herman claimed Moffitt, a Missouri resident, performed at Scarlett’s from 2015 to 2022.
According to the lawsuit, White, an Illinois resident, performed there from 2017 to 2022.
Scarlett’s was alleged to have failed to pay minimum wage and subjected dancers to unlawful kickbacks and deductions.
The club allegedly took and assigned tips in violation of federal law, state minimum wage law, and state wage payment law.
The lawsuit claimed that a ten year recovery period applied to claims under wage payment law and a three year period applied to other claims.
It claimed that the only earned money dancers received was in the form of tips or gratuities that customers paid directly.
It further claimed Scarlett’s required dancers to pay management a kickback of about $45 to $100 for each shift.
Scarlett's allegedy required dancers to assign to management a portion of tips including $20 for each booth dance, $75 for each conversation room dance, and $400 for each “bit room” dance.
It allegedly required them to assign to management up to 40% of tips they received from customers who paid through a credit card.
And it allegedly required them to assign $30 to $60 per shift to managers and $10 to $20 to the DJ, the house mom, and security.
Illinois corporation records identify Eric Langan of Houston as president of RCI Dining Services, the company that owns Scarlett’s.
Benjamin Allen of Houston and Michael Haeberle of Chicago represented Scarlett’s.
Gregg Greenberg of Maryland represented Moffitt and White along with Herman.