Lawyers for topless club rebuked in suit

Bill Gang

Tuesday, July 20, 1999 | 10:47 a.m.

District Judge Stephen Huffaker has chastised the attorneys representing one of seven topless clubs for stonewalling attempts to gather information in a class-action lawsuit they are facing over allegations of illegal tip kickbacks.

Huffaker on Monday ordered the Crazy Horse Too to turn over the names of all topless dancers who worked there before the lawsuit was filed in March 1997.

The judge also cautioned all of the clubs not to talk about the legal proceedings with any of their current dancers who might be part of the affected class -- estimated to be more than 600 women who entertained between 1994 and 1997.

The lawsuit, filed by attorney Ara Shirinian, also names Cheetah's Lounge, What's Up Lounge, Olympic Gardens, Club Paradise, Crazy Horse Saloon and Little Darlings of Las Vegas.

Huffaker noted there have been suggestions the clubs have been improperly encouraging their current employees to forgo participation in the legal action.

Crazy Horse Too attorney Tony Sgro argued that he shouldn't have to turn over the names of dancers because the club can't verify the existence of the dancer named in the lawsuit to justify bringing the club into the legal action.

Without that, he said, the Crazy Horse Too shouldn't be named in the lawsuit.

But the judge said there is an affidavit on file from a woman who claimed she was a dancer there "and I have to think that is true."

Huffaker conceded that he is aware the dancers often use "aliases, nicknames and stage names" to obtain work as so-called independent contractors.

Sgro said the woman is "someone with somewhat suspect credibility."

"Everyone in this suit has suspect credibility," the judge countered. "That's the nature of this business."

At issue in the lawsuit are the allegations that managers of the clubs violated Nevada law by requiring dancers split tips with the businesses.

Topless dancers, the lawsuit states, have the same job requirements and employer demands as a normal employee, yet work for tips only, and those must be shared with the management.

The clubs demanded no less than $30 per employee per shift, the lawsuit alleges.

Under Nevada law tokens given to tip-earning employees such as casino dealers and food servers may be shared among workers, but management cannot demand a cut, the lawsuit states.

The clubs maintain the dancers are "independent contractors" who agree to the working conditions at the topless taverns.

Those conditions involve dancing and stripping on stage and entertaining customers off stage, and sometimes include enticing customers to drink, the lawsuit states.

The shifts are eight hours or longer and during that time dancers can't leave without permission. Dates after hours are prohibited and dancers can't smoke in front of customers.