Strip club sued by dancers over 'socialist' tip system

The dancers are seeking $100,000 in compensatory damages

Two dancers at an Alabama strip club are suing their former employer over several alleged violations that include a "socialist" tip-sharing system.

The former dancers at Sammy’s Gentlemen's Club in Birmingham said the club owners allegedly "forced a socialist economic system" by requiring them to share their tips among the club's staff as part of an "illegal tipping pool."

"[Club owners] forced a socialist economic system on the dancers mandating they subsidize their co-workers," the lawsuit, filed in the Northern District of Alabama on Sunday, said.

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Exotic dancer

Oni Crawford, an exotic dancer who works for herself making content to post on OnlyFans, creates video content at her home in Temple Hills, Maryland, on Oct. 13, 2021. (Carolyn Van Houten / The Washington Post / Getty Images)

The two dancers, who were not identified in the lawsuit, said they were classified as independent contractors and denied minimum wage and overtime.

"During their time being employed by defendants, plaintiffs were denied minimum wage payments and denied overtime as part of defendants’ scheme to classify plaintiffs and other dancers/entertainers as ‘independent contractors,’" the lawsuit stated.

Dollar bills

Dollar bills are seen on display in this photo illustration. (Igor Golovniov / SOPA Images / LightRocket / Getty Images)

Citing the Department of Labor, the suit alleges that this "scheme" is found in a growing number of U.S. workplaces "as a means to cut costs and avoid compliance with labor laws." 

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The dancers also said the club owners would force them to pay a kickback, called a "house fee," to work, and the club would increase this fee later in the night, according to the lawsuit.

"Defendants would also force plaintiff to pay kickbacks to the club just to work. These kickbacks were called ‘house fees.’ In order to further control plaintiffs, the club would increase the amount of kickbacks later into the evening," the lawsuit said.

Dancer with money

Charlie holds a bag full of cash in North Hollywood, California, on Aug. 25, 2023, as new policies implemented by Star Garden management after reopening now requires the dancers to supply cash and be in charge of exchanging customers' cash for smalle (Jason Armond / Los Angeles Times via Getty Images / Getty Images)

The former dancers at Sammy’s Gentlemen's Club are seeking $100,000.

Ten other unnamed Sammy’s employees are also listed as defendants. 

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Fox News has reached out to Sammy's Gentlemen's Club for comment.