Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comKey Contacts
Back
As a New York City “gentlemen’s club” can attest, a wage lawsuit can be costly for employers.
The Penthouse Executive Club recently agreed to pay its dancers a total of $8 million to resolve allegations of a wage lawsuit that it failed to pay proper wages and misclassified workers as independent contractors.
The initial New York employment lawsuit was filed in 2009 by two former employees; however, it ultimately grew to a class action involving 1,245 dancers. Under the terms of the proposed settlement, each dancer will receive a minimum settlement payment of $3,727.79 for the first year of employment and $988.13 for each subsequent year thereafter.
While the case may involve the exotic-dance industry, the wage violations charges against the employer are quite common.
The lawsuits allege that the Penthouse Executive Club violated the Fair Labor Standards Act and New York State labor law by failing to pay minimum wages and overtime wages, failing to reimburse employees for the purchase and cleaning of uniforms, and unlawfully retaining and withholding employee tips.
According to National Economic Research Associates, Inc.’s report, 2012 Update: Trends in Wage and Hour Settlements, the Penthouse Executive Club is not alone is paying a hefty settlement to resolve these types of allegations. It found that wage and hour settlements for U.S. companies totaled $467 million in 2012. On average, companies paid $4.8 million per case.
As these cases highlight, wage and hour issues can be particularly challenging for employers. Therefore, it is always advisable to work with an experienced employment attorney before problems arise.
Have you ever witnessed an instance where a business was hit with a wage lawsuit? How were the employers and employees affected? If you have a story that you’d like to share, feel free to leave it in the comment section below.
- Locations: New York City
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
“Gentlemen’s Club” Loses NYC Wage Lawsuit
Author: Dan Brecher
As a New York City “gentlemen’s club” can attest, a wage lawsuit can be costly for employers.
The Penthouse Executive Club recently agreed to pay its dancers a total of $8 million to resolve allegations of a wage lawsuit that it failed to pay proper wages and misclassified workers as independent contractors.
The initial New York employment lawsuit was filed in 2009 by two former employees; however, it ultimately grew to a class action involving 1,245 dancers. Under the terms of the proposed settlement, each dancer will receive a minimum settlement payment of $3,727.79 for the first year of employment and $988.13 for each subsequent year thereafter.
While the case may involve the exotic-dance industry, the wage violations charges against the employer are quite common.
The lawsuits allege that the Penthouse Executive Club violated the Fair Labor Standards Act and New York State labor law by failing to pay minimum wages and overtime wages, failing to reimburse employees for the purchase and cleaning of uniforms, and unlawfully retaining and withholding employee tips.
According to National Economic Research Associates, Inc.’s report, 2012 Update: Trends in Wage and Hour Settlements, the Penthouse Executive Club is not alone is paying a hefty settlement to resolve these types of allegations. It found that wage and hour settlements for U.S. companies totaled $467 million in 2012. On average, companies paid $4.8 million per case.
As these cases highlight, wage and hour issues can be particularly challenging for employers. Therefore, it is always advisable to work with an experienced employment attorney before problems arise.
Have you ever witnessed an instance where a business was hit with a wage lawsuit? How were the employers and employees affected? If you have a story that you’d like to share, feel free to leave it in the comment section below.