In September, the Nevada Supreme Court said the clubs must pay the state live entertainment tax. Then, on Oct. The successful class action case for as many as 6, current and former dancers who perform seminude could cost the club millions of dollars.
The latest ruling creates myriad issues for the industry, which attorneys for the dancers say ultimately will be forced to comply with the ruling. There are also issues of health insurance, protection against sexual harassment and the right to unionize that come with the classification of dancers as employees and not independent contractors, said Tucson lawyer Mick Rusing, one of the attorneys in the case who has been fighting the issue in Nevada for 20 years.
But the financial bottom line just for the retroactive wages for the 6,plus dancers who have worked at the club is significant, he said.
Marketdata Enterprises Inc. Michele Cosper, a Las Vegas resident, former Sapphire dancer and one of the original plaintiffs in the case, said the decision has been a long time coming for the dancers.
Customers who come into the clubs get bombarded now by dancers trying to cover their fees so they can make a living, Cosper said. During her years at the club from to , Cosper said she saw dancers who got injured and had no health insurance because of their independent contractor status. When a dancer was injured, a tip jar usually was placed in the locker room so other dancers could help pay the bills. But nowhere near the six figures the club said dancers were making.
