Club Cabaret Dispute Headed to Mediation
The Creve Coeur-based dance club battle with its staff wages on, with the attorney for the club most recently threatening the club’s dancers with the IRS if their lawsuit continued. The attorney said he would “turn in” the dancers and his client would enjoy the benefits of a “two-for” because they would also receive the finder’s fee offered by the IRS. This threat was included in an eight-page statement sent to a Chicago-based retired judge hired to mediate the settlement by the attorney that also included profanity, sexual innuendo, and sarcasm.
Problems began for the club in 2015 when several of its dancers sued because they believed they deserved to be treated as employees, instead of independent contractors, which would mean they would need to be paid at least minimum wage.
Though statements sent to mediators prior to mediation are usually sealed and kept from the public. The attorney of the dancers filed a motion seeking sanctions against the Michigan attorney, making his statement public. The attorney of the dancers is requesting the club’s attorney be kicked off the case, or the club be forced to pay the costs associated with failed mediation.
The statement filed with the judge implied the dancers couldn’t possibly want to be treated as employees, as they would be forced to pay taxes on their work. It was an emotional statement and also expressed disgust at the dancers’ behavior, at one point referring to them as “these types of women.” It concluded with a message to the dancers’ attorney stating: “I’m done with the charade that is these dancer suits. Paul: You want to go scorched Earth? Let’s go scorched (expletive) earth. You want to dance, you and I? I’ll lead.”
At this point, mediation could be hopeless, as the club and its attorneys seem unwilling to compromise.