How Colorado strip clubs persistently steal wages from their workers

The life of a stripper at Denver’s strip clubs is rife with exploitation and wage theft. Devynn Dewey, a dancer at Rick’s Cabaret and Diamond Cabaret, faces exorbitant fees just to work at these clubs. From house fees to promo fees, lap dance fees, and tips shared with managers, the dancers end up going home with less money than they started with.

JS’s investigation revealed that these practices are not unique to just Rick’s Cabaret and Diamond Cabaret but are part of the business model of strip clubs owned by RCI Hospitality Holdings. The company has faced lawsuits in multiple states for misclassifying dancers as independent contractors, not paying minimum wage, and diverting tips to other employees. The use of arbitration agreements further complicates the situation, making it difficult for dancers to fight for their rights.

Despite the crackdown by Denver Labor, the exploitation continues, with dancers forced to pay for missed shifts, tip out managers, and face fines for infractions. This systemic issue of wage theft at strip clubs is not new and extends beyond Denver. The recent actions by Denver’s auditor may have an impact, but the clubs have the resources to find ways to continue exploiting dancers.

RCI’s business model has faced legal challenges in other states, with lawsuits alleging wage theft, illegal deductions, and misclassification of workers. The use of arbitration agreements further limits the ability of dancers to seek justice. Forced arbitration deprives workers of their rights and benefits employers, creating a system of persistent lawlessness in the strip club industry.

The hope is that the Denver Labor investigation sheds light on the exploitation faced by dancers and prompts change in the industry. It is a pivotal moment for these workers to demand fair treatment and an end to wage theft in strip clubs.