Devynn Dewey begins each night time within the gap.
The dancer at Rick’s Cabaret and Diamond Cabaret should pay the Denver golf equipment as a lot as $140 only for the chance to work. Then there’s a mysterious $8 “promo payment.” Each lap dance takes one other $5 out of her pocket. Recommendations on personal suites? One other 25% to the supervisor. And, on the finish of the night time, she fingers out more money to the DJ and bouncers.
“We’ve been traditionally ignored,” Dewey mentioned in an interview. “Due to that, they’re in a position to retaliate or push us into silence. The backlash isn’t price talking up.”
Interviews with eight dancers who’ve labored at metro Denver strip golf equipment present wage theft is baked into the enterprise mannequin — $5 right here, $10 there — to the purpose the place dancers generally go residence with much less cash than they’d at first of the night time.
Dancers informed JHB they really feel pressured to illegally share suggestions with managers for worry of retaliation or termination. In the meantime, unexplained charges proceed to escalate.
The Put up’s reporting mirrors findings from Denver Labor, a division of town auditor’s workplace, which final month ordered Diamond Cabaret and Rick’s Cabaret to pay practically $14 million in fines and restitution over what it referred to as a yearslong marketing campaign to steal wages from workers.
All of that is commonplace apply amongst strip golf equipment owned by RCI Hospitality Holdings, which owns the 2 golf equipment and three different Denver grownup venues, in accordance with the entertainers interviewed by The Put up and Denver Labor’s findings.
RCI has confronted lawsuits in a minimum of three states, with dancers accusing the strip membership house owners of misclassifying them as unbiased contractors, failing to pay minimal wage and siphoning away tricks to different workers. After one New York lawsuit, the corporate mandated all dancers at its golf equipment signal arbitration agreements that block them from submitting lawsuits or class-action claims.
These agreements, specialists mentioned, make it practically unimaginable for an particularly weak workforce to adequately combat for his or her rights.
“For strip golf equipment, the enterprise mannequin is predicated on not following the regulation,” mentioned David Seligman, govt director of In the direction of Justice, a corporation that has represented dancers in litigation. “It’s based mostly on evading the regulation and hiding behind arbitration clauses.”
Attorneys representing RCI and its strip golf equipment declined interviews for this story, referring The Put up to earlier statements. In a lawsuit filed in opposition to Denver labor officers this month, the golf equipment vehemently denied stealing wages and maintained their staff shouldn’t be categorised as workers entitled to town’s minimal wage.
“The entertainers at these institutions are entrepreneurs — masters of their very own schedules, their very own careers, their very own freedom,” RCI mentioned in a press release final month. “But Denver Labor seeks to ‘rescue’ them from a actuality that wants no rescuing, manufacturing an issue the place none exists and violating constitutional rights within the course of.”
Completely working for suggestions
Denver strip golf equipment have been within the highlight for the reason that metropolis’s labor division final month introduced the outcomes of its multi-year investigation that discovered Diamond Cabaret and Rick’s Cabaret engaged in widespread wage theft involving a whole lot of staff.
The unprecedented investigation discovered the grownup venues “violated practically each relevant provision” of Denver’s minimum-wage legal guidelines, together with misclassifying entertainers as exempt from metropolis ordinances; failing to pay employees town’s minimal wage; and stealing cash from entertainers by requiring them to pay charges for the privilege of working.
Denver Labor’s director acknowledged the $14 million in restitution and penalties “seems to only be the tip of the iceberg.” The strip golf equipment’ lawsuit in response to the findings alleges town’s labor officers exhibited a “reckless abuse of energy” that violated the constitutional rights of the 2 companies.
Most dancers in Colorado are categorised as unbiased contractors — which means they don’t seem to be entitled to a minimal wage, paid sick depart, well being advantages, trip or staff’ compensation.
In reality, dancers at many of those grownup venues make no hourly wage in any respect, completely working for suggestions, Denver Labor discovered.
They begin, although, each night time within the crimson. There’s the home payment that each dancer should pay in an effort to work — a quantity that fluctuates relying on the membership, day and time of the shift. Contracts for 3 Denver-area strip golf equipment — together with one not owned by RCI — reviewed by The Put up present these charges vary from $20 for an early weekday shift to $140 for a primary 11 p.m. weekend slot.
Some golf equipment cost staff to park of their heaps — with a further $5 or $10 tip customary for the valet. As soon as inside, dancers would possibly pay the membership $5 per tune for a lap dance. If they’re with a shopper and miss their scheduled time onstage, they owe one other payment. At Diamond and Rick’s, administration additionally takes a minimize of all tips about suite purchases — generally taking residence greater than the dancers, these ladies mentioned.
RCI, in a press release earlier this month, mentioned Diamond and Rick’s adopted all native, state and federal legal guidelines associated to unbiased contractors and hospitality workers, “all of whom have correctly obtained the total quantity of their completely different types of remuneration.”
On the finish of the night time, dancers mentioned in addition they typically really feel compelled to tip the DJ, bouncers and home mother — somebody who serves as a casual dressing room supervisor.
Christine Grace, a former dancer at Shotgun Willie’s, a membership in Glendale, mentioned she normally tipped 25% of her earnings for the night time to the varied individuals who make the membership run. (Administration of Shotgun Willie’s couldn’t be reached for remark Friday.)
Denver Labor outlined the financials for one employee within the metropolis’s investigative findings final month. The dancer, whom the division solely recognized by her initials, labored 98 occasions in 2024, paying greater than $7,000 in charges to the Diamond Cabaret throughout her 461 hours. She made $0 in hourly wages, although she did take residence suggestions.
A number of dancers informed The Put up there are nights after they paid out more cash in charges, fines and suggestions than they made giving dances.
“You could have this sense that it’s (expletive) up now we have to pay to work, particularly realizing how a lot they’re profiting off of us,” mentioned one Rick’s Cabaret dancer, who spoke on the situation of anonymity as a result of she nonetheless works on the membership. “For me, it was simply accepted. Should you wished this work, that is what you needed to do.”
When Rebecca Dolana labored at PT’s Showclub in Denver, tipping was depicted as voluntary. However different golf equipment required her to tip a sure share to different staff just like the DJ and the bouncers, she mentioned.
“There have been sure bouncers that have been extra aggressive than others about getting their tip-out,” she added.
When she carried out a personal dance, Dolana charged $30 for a day shift dance and $50 for an evening shift dance. She mentioned administration counted what number of occasions she frequented the personal dance space and what number of songs she danced. Managers instructed dancers on the minimal they may cost for a dance, so that they knew what to anticipate for tip-out, Dolana mentioned.
“They’d be like, ‘Nicely, I do know you probably did a minimum of 20 dances at this time, so I must be anticipating a minimum of this quantity from you,’ ” Dolana mentioned. “Should you combat them on that in any respect — they are saying it’s not obligatory, however you actually received’t be welcomed again.”
“It’s not authorized”
Dancers informed The Put up that all the pieces modified when RCI took over the golf equipment in 2021.
The Houston-based firm that yr bought 11 strip golf equipment — together with Denver golf equipment Diamond Cabaret, Rick’s Cabaret, PT’s Showclub, PT’s Centerfold and Scarlett’s Cabaret — for $88 million. Within the first quarter of 2025, RCI reported $71.5 million in complete revenues.
Beneath the earlier proprietor, VCG, staff mentioned they sat by means of courses wherein administration taught them about native wage theft and minimal wage legal guidelines. A few of these managers continued on by means of new possession.
Shortly, dancers mentioned, they observed drastic adjustments.
Throughout an preliminary assembly with the brand new brass, one employee famous that the Diamond Cabaret didn’t have a technique to clock out for breaks, in accordance with one other dancer who spoke on the situation of anonymity to guard her employment.
“You’re right here to work,” one supervisor replied, in accordance with the dancer within the room, “not take breaks.”
RCI instantly instituted a coverage wherein managers would obtain 25% of tips about each buy of “Dance {Dollars}” — the inner forex used on the firm’s golf equipment.
Denver regulation forbids managers from receiving a portion of suggestions paid by clients. A number of supervisors stop after they realized of the tip cut up, dancers informed The Put up. Two different managers have been fired whereas they have been pregnant, two staff mentioned.
“Earlier than RCI purchased out the golf equipment, we by no means tipped managers,” Dewey mentioned. “It’s not authorized.”
Dancers mentioned they knew there could be repercussions in the event that they didn’t tip-out supervisors.
“It creates a very uncomfortable, conflicting setting,” Dewey mentioned. “Then there’s favoritism; when you’re not tipping, you’re not gonna be handled nicely. You are feeling strain to provide the following pointers.”
Attorneys for the grownup venues, of their lawsuit in opposition to town, vehemently pushed again on the allegation that managers stole suggestions from entertainers and workers.
Quite than taking suggestions meant for different staff, these managers are straight interacting with purchasers, dealing with transactions and offering an choice for purchasers to tip them as VIP hosts, the golf equipment mentioned. Then they “voluntarily share” a portion of the ideas with the remainder of the employees.
Employees informed The Put up they’d by no means heard the time period “VIP hosts” and that managers merely course of the transactions.
Home charges elevated. RCI then added a “promo payment” of $8 per employee per night time that the dancers couldn’t clarify. Each are unlawful in Denver and cited within the audit.
The brand new possession additionally quickly elevated the variety of grownup entertainers engaged on any specific night time, staff mentioned, amassing home and promo charges for every. This has led to extra cutthroat competitors amongst staff vying for purchasers and decrease take-home pay.
As well as, staff mentioned new administration instilled a tradition of worry.
In December, the Diamond Cabaret fired three staff who had supplied info to Denver Labor for his or her investigation, in accordance with the auditor’s willpower letters. The town deemed these firings “questionable, suspect and retaliatory acts.” The membership additionally instituted a brand new coverage banning staff from taking photographs or movies within the membership — a direct shot on the individuals who had submitted proof to investigators.
“Within the face of mounting investigations and vital legal responsibility, the Diamond selected to circle the wagons, hearth any workers who would possibly communicate to the federal government, and commit additional violations of regulation,” Denver Labor officers wrote.
Bernadette Barton, professor of sociology and director of gender research at Morehead State College in Kentucky, referred to wage theft at strip golf equipment as “a giant institutional drawback” — and a problem that extends far past Denver.
“This has been happening for many years,” Barton mentioned. “That is nothing new.”
Myriad components contribute to the longstanding problem. Dancers are “virtually completely” categorised as unbiased contractors by their employers, Barton mentioned.
Dancers are sometimes transient and momentary staff, she mentioned, and they are often younger and inexperienced. As a result of they face social stigma about their jobs, Barton mentioned they’re deterred from organizing unions to symbolize them collectively.
In consequence, dancers are sometimes pressured to pay for missed shifts and shift charges, together with tip-outs and fines for infractions, Barton mentioned. Typically, in addition they have to shell out a share of their lap-dance earnings.
So “if situations are unhealthy at a membership, it’s simpler simply to stop that membership and go to a distinct membership,” she mentioned.
The current motion by Denver’s auditor struck Barton as “considerably unusual.” Nevertheless, it stays to be seen whether or not it’ll make a significant influence on the business nationwide.
“The golf equipment have much more assets than the dancers, so no matter occurs, the golf equipment will most likely discover a technique to take it out on the dancers,” she mentioned.
Lawsuits problem RCI’s enterprise mannequin
These options look like RCI’s enterprise mannequin — one which has confronted a collection of authorized challenges in different states.
In 2009, a trio of dancers in New York sued the corporate for refusing to pay a minimal wage, unlawfully demanding wages from workers, illegally deducting wages by means of fines and penalties, and misclassifying staff as unbiased contractors.
A choose discovered the ladies have been workers and subsequently entitled to be paid a minimal wage. The events agreed to a $6.8 million settlement.
In 2016, a pair of dancers in Florida filed an analogous lawsuit, accusing RCI of siphoning suggestions from entertainers to pay ineligible staff. The events settled out of courtroom.
Two years later, dancers in Philadelphia alleged the corporate didn’t pay wages or extra time and charged dancers to work. That lawsuit is ongoing.
A notable function in that case: RCI mandated dancers signal arbitration agreements that prohibit staff from bringing claims in courtroom, together with class-action complaints. The corporate contains these provisions in its Colorado contracts.
The strip membership business, and RCI, hardly stand alone. Over the previous 25 years, companies have more and more relied on arbitration agreements to forestall staff from becoming a member of collectively to deliver collective lawsuits.
The Financial Coverage Institute, a Washington, D.C., suppose tank, referred to as arbitration agreements an “epidemic”, depriving staff and shoppers of their rights. As one choose opined, these agreements give companies a “get out of jail free” card for all potential transgressions.
The American Civil Liberties Union in 2019 referred to as on Congress to finish pressured arbitration in employment discrimination and client contract instances.
“Pressured arbitration has had the impact of slamming the courthouse doorways within the face of victims of office harassment and discrimination, and is a big boon to employers,” the civil rights group mentioned.
Arbitration is rather more costly, typically confidential and doesn’t embody the identical guidelines of discovery as a courtroom, mentioned Seligman, the In the direction of Justice govt director. On common, workers and shoppers win much less typically and obtain a lot decrease damages in arbitration than in courtroom, the Financial Coverage Institute discovered.
“Strip golf equipment use these agreements to permit them to keep up this mannequin of persistent lawlessness,” Seligman mentioned.
These agreements make it all of the extra needed for presidency our bodies to implement current regulation, since that isn’t certain by arbitration clauses, he mentioned.
Dewey mentioned she hopes the Denver Labor investigation opened the general public’s eyes to how these golf equipment exploit her and her colleagues.
“A number of entertainers really feel they must stay within the shadows of society,” she mentioned. “It is a actually vital second for us.”
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