Denver Strip Clubs Under Fire for Alleged Wage Theft
Devynn Dewey, a dancer at Rick’s Cabaret and Diamond Cabaret in Denver, faces numerous challenges every night on the job. From high fees to mandatory tipping, dancers like Dewey often go home with less money than they started with. In an interview, Dewey highlighted the culture of silence that dancers are forced into due to fear of retaliation.
Recent investigations by Denver Labor revealed widespread wage theft at these clubs, resulting in fines and restitution orders totaling nearly $14 million. The audit found that dancers were misclassified as independent contractors, leading to violations of minimum wage laws and other labor regulations.
The strip clubs under scrutiny are owned by RCI Hospitality Holdings, a company that has faced lawsuits in multiple states for similar labor violations. Dancers have accused RCI of exploiting them through illegal fees, tip-sharing requirements, and arbitration agreements that prevent them from seeking legal recourse.
Despite denials from club management, the reality for dancers is a challenging one. They start each night in debt due to house fees and additional charges, and are often pressured to tip out various staff members, further reducing their earnings.
RCI’s acquisition of the Denver clubs in 2021 brought about significant changes, including increased fees, tip-sharing policies, and a culture of fear among workers. The company’s use of arbitration agreements has further limited dancers’ ability to challenge unfair labor practices.
While Denver Labor’s actions against the clubs are a step in the right direction, the issue of wage theft in the strip club industry is a longstanding problem that extends beyond Denver. Dancers, classified as independent contractors, face numerous financial challenges and legal hurdles that make it difficult to advocate for their rights.
Experts and advocates are calling for stronger enforcement of labor laws and an end to forced arbitration in cases of workplace exploitation. Dancers like Dewey hope that increased public awareness of these issues will lead to meaningful change in the industry.
