The Cadillac Lounge strip club in Providence, Rhode Island, has agreed to pay $1.25 million to settle a lawsuit brought by dancers who said the club violated federal fair labor standards by failing to pay them minimum wage.
The Providence Journal reported that the owner of the Cadillac Lounge is seeking court approval for the class action settlement. If approved by a federal judge, notice of the terms will be mailed to dancers who worked at the club since June 2012.
Brant Casavant, a lawyer for the dancers, said he and his clients were happy with the settlement.
The suit alleged dancers were treated as independent contractors and required to pay “unlawful fees, fines and tip-outs to ineligible employees.”
A club attorney said the majority of the entertainers had signed arbitration agreements barring them from joining class actions.