Exotic dancers who worked at a Philadelphia strip club that substantially controlled the work environment and took cuts of tips and lap dance proceeds are employees and can bring an FLSA collective action, a federal judge has ruled.

U.S. District Judge Anita Brody of the Eastern District of Pennsylvania ruled in Verma v. 3001 Castor that The Penthouse Club improperly classified its strippers as independent contractors instead of employees. The ruling is a win for a proposed class of strippers who claim they are entitled to minimum wage, overtime compensation and all the gratuities they earned.