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This settlement does that, making the case unique, he said.Ĭontrary to what many people might think, 'the clubs would like the entertainers to be employees' because 'they could then control the entertainers and the clubs would make a lot more money,' Shafer said. Having already gone through the 2008 lawsuit, which involved a monetary settlement, he said he was determined to resolve the current lawsuit in a way that would rule out another similar suit a few more years down the road. 'It's not just strippers, but it's hairdressers, cab drivers, Uber drivers, home health care workers,' Shafer said. The lawsuit's roots go back even earlier, to a similar lawsuit filed in 2008 and settled in 2011, but that had a settlement that did not include requirements that Déjà Vu determine, going forward, whether dancers were in fact club employees or independent contractors.īradley Shafer, the Lansing attorney representing Déjà Vu and Mohney, said there has been a raft of similar lawsuits in a wide range of industries.

The case began in 2016, when a Bay City dancer filed suit against Déjà Vu clubs in Saginaw, but it was expanded this year to include Déjà Vu clubs and their affiliates nationwide. Until recently, Michigan law prohibited fully nude dancing at clubs where alcohol was served.

'We've heard many stories about clubs taking advantage of dancers and exploiting them,' Young said.īut in backing the settlement, Déjà Vu and Mohney deny the allegations in the suit and admit no wrongdoing.ĭéjà Vu, founded in Michigan but now a national firm with offices in Michigan, California and Nevada, has operated many of its clubs under a model in which the clubs serve no alcohol but dancers disrobe completely. Jesse Young, a Southfield attorney representing the plaintiffs, said many of the dancers may only receive a couple of hundred dollars, but the benefits of the settlement go far beyond the cash settlement and include future wages, unemployment insurance, and the right to unionize if they are deemed club employees. The proposed settlement covers more than 60 clubs around the country, of which 11 are in Michigan, including Déjà Vu Showgirls in Highland Park, Larry Flynt's Hustler in Lincoln Park, and Déjà Vu Showgirls in Lansing. “It was not easy to make money and there were nights that I walked out with less than what I came in with,” Sage said in a letter to the court. Minneapolis-area dancer Stephanie Sage said that with as many as 28,177 dancers sharing in the settlement, the offer is too small. District Judge Stephen Murphy as 'reasonable, fair and adequate,' ahead of a June 7 fairness hearing in Detroit. So far, only one dancer has objected to the proposed settlement, which has received preliminary approval from U.S. Another $1 million will pay attorney fees and penalties. The dancers can also choose whether to share in a $1-million cash payment pool or instead share in a $4.5-million pool that will credit them for rent and dance fees paid to the clubs.

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Those deemed employees will be paid minimum wage, plus bonuses including commissions of at least 20% on their private dances and drink sales, and receive club support to pay for employment-related expenses such as the purchase and cleaning of costumes and payment of required local license fees.

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Under the proposed settlement, Déjà Vu will assess all current and future dancers based on a set of agreed criteria - including the dancer's expressed wishes - to determine whether they should be hired or retained as employees or as independent professional entertainers. The case centers on whether the dancers are employees or independent contractors - a classification that affects issues such as whether the clubs must pay them a minimum hourly wage or can instead charge them for doing business inside the clubs.ĭéjà Vu maintains that despite the claims made in the lawsuit, most exotic dancers who are given the opportunity to become club employees find out they prefer being independent contractors, because they make more money that way and have more control over their hours of work. The dancers also face monetary penalties for leaving early or showing up late, the suit alleges. The suit against Déjà Vu Services, related companies and club principal Harry Mohney alleges the nude and nearly nude dancers are paid no wages but required to pay rent to the clubs, plus 30% or more of their tips. More than 28,000 exotic dancers at Déjà Vu clubs across the country will share in a $6.5-million settlement and enjoy more employment rights under a class-action lawsuit settlement pending in federal court in Detroit. Watch Video: Nude dancers offered $6.5M to settle suit