Denver metropolis officers for the primary time issued subpoenas in an try to recuperate wages for dancers at a trio of strip golf equipment.
Denver Metropolis Council in April voted unanimously to present Denver Labor subpoena energy to make use of throughout wage-theft investigations.
“It’s a win for Denver’s employees that we had this course of in place in time,” Denver Auditor Timothy M. O’Brien stated in a Tuesday information launch. “That is the primary time we’re utilizing this subpoena energy and with out it we’d be unable to conduct our investigation into whether or not dancers’ rights are being violated.”
Metropolis labor investigators have been working to find out whether or not PT’s Showclub, Diamond Cabaret and PT’s Centerfold misclassify their dancers as non-employees to keep away from paying them minimal wage, additional time, paid sick go away and all of their earned ideas.
Town issued subpoenas for these golf equipment after the companies failed to provide information associated to contracts, contact info and dancers’ funds, the information launch acknowledged.
The strip golf equipment have till Sept. 24 to completely reply. In the event that they don’t, they are going to face fines of as much as $1,000 per day.
The investigation, metropolis officers stated, stays ongoing.
A consultant with PT’s Centerfold declined to touch upon the subpoena. PT’s Showclub and Diamond Cabaret couldn’t be reached for remark.
The brand new subpoena energy comes amid years of effort on the metropolis and state degree to crack down on wage theft and misclassification.
Earlier than the April ordinance, the Denver auditor’s workplace might solely concern fines to firms that didn’t hand over requested paperwork in wage theft investigations. Companies might pay the fines relatively than adjust to the investigation.
The regulation change additionally empowered the auditor’s workplace to cost 12% curiosity on unpaid wages in addition to to levy fines as much as $25,000 per violation. Denver Labor can acquire as much as 300% of unpaid wages as civil damages to compensate employees.
In 2023, Denver recovered greater than $2 million in unpaid wages — almost double the quantity recovered the 12 months prior.
“Wage theft is devastating,” Councilmember Sarah Parady, one of many invoice sponsors, stated in April. “What we want is for our enforcement company to be empowered to get no matter info is required to get to the reality.”
One other ordinance, handed by the Metropolis Council in 2023, allowed complaints to go straight to the auditor, versus the court docket, serving to folks to receives a commission quicker.
The regulation additionally offers for upstream legal responsibility — that means a basic contractor on a development challenge could be answerable for wages and penalties if their subcontractor fails to pay its workers.
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