In yet another victory for workers who have been misclassified as independent contractors, an appellate court recently affirmed a multimillion-dollar verdict for a class of exotic dancers. Plaintiff Priya Verma sued her former employer, defendant 3001 Castor, Inc. d/b/a The Penthouse Club (the Penthouse Club), alleging that it violated the Fair Labor Standards Act (FLSA), the Pennsylvania Minimum Wage Act (PaMWA) and the Pennsylvania Wage Payment and Collection Law (PaWPCL).

Verma worked at the Penthouse Club as an exotic dancer. In her class action lawsuit, Verma alleged that the Penthouse Club improperly classified its dancers as independent contractors instead of employees, and, as a result, the Penthouse Club failed to pay her and all other dancers statutory minimum wages and premium overtime compensation. Verma also alleged that the Penthouse Club improperly took a percentage of the compensation that dancers earned from performing dances on the club’s stage and in private rooms for individual customers. See Verma v. The Penthouse Club, Civil Action No. 13-3034 (E.D. Pa. Nov. 29, 2016).