This blog recently discussed a case in which exotic dancers filed a class action lawsuit against their employer for allegedly misclassifying them as independent contractors, rather than employees. The case also claims that, although the dancers made nearly $50,000 per year in tips, the club allegedly forced them to put their tips into a “tip pool” which illegally included employees such as managers and bouncers.
The settlement of nearly $13 million for that case has recently been approved by a federal court. It took nearly two years for lawyers to prove that the case fairly and properly represented all dancers in the class. Now that the settlement has been approved, it includes an agreement that the lawyers on each side will not discuss the case for at least six months.
With the settlement finalized, each of the 14 dancers who agreed to participate as named plaintiffs in the case will receive an “incentive award” of $1,000 to $15,000 each. This is to reward them for the time they spent on the case and for the personal and professional risks they took in allowing their names to be used.
The rest of the $12.97 million settlement will be divided up among dancers in six states who filed claims. After attorney fees and incentive awards are deducted, dancers in California will get 50.14% of the money remaining, those in Nevada will get 42.69%, and 7.16% will go to dancers in Kentucky, Idaho, Texas, and Florida.
The attorneys at the Chicago Overtime Law Center are investigating tip pool claims against Starbucks and other restaurant chains. If you are the victim this practice call us at (312) 869-4095 or contact us online.
The lawyers at the Chicago Overtime Law Center have decades of experience fighting for wage earner’s rights. We have a team of overtime attorneys who focus on nationwide class action lawsuits and work out of Chicago and Oak Brook offices. We protect unpaid workers who haven’t received overtime throughout the Chicago area including in DuPage, Kane and Cook Counties. Our Rosemont and Schaumburg overtime lawyers are intimately familiar with the issues that arise during wage claim litigation, and we know the laws that govern overtime cases well. Many employers misclassify employees as being exempt from overtime laws and pay workers salaries instead of hourly wages in order to avoid paying them overtime. Some employers mistakenly classify employees as exempt and others intentionally do so in order to circumvent the law. In either case, workers do not receive the wages they should, and a lawsuit may be the only way to recover their earned wages. The Chicago Overtime Law Center is based in Chicago, and represents clients throughout the country who have not been paid for the overtime hours that they worked. If you believe that you are owed overtime wages, contact one of our Chicago wage and hour attorney by phone at (312) 869-4095 or through our online form.