The legal distinction between an independent contractor and an employee is largely a question of control.
Are there “club” guidelines for the dancers to follow? For example, do they have to wear a specific type of outfit or do they need to be a certain size or have favorable attributes. Are they required to work a certain number of hours and if they do not show up will there be monetary consequences?
Most if not all dancers would prefer to work as independent contractors rather than as employees because of the tax implications, but unfortunately their employment status is not a choice it is a decision based on facts.
Ok, let’s go over the ten facts of what an employee is.
- The more instructions the employer gives the worker, the more likely the worker is an employee.
- The more closely integrated the work is with the employer’s business, the more likely the worker is an employee.
- Services rendered personally. If the worker must personally do the work, that tends to suggest employee status.
- Continuing relationship. The longer the arrangement’s term between company and worker, the more likely the worker will be considered an employee.
- Set hours of work. Set hours (such as 9 a.m. to 5 p.m.) are more consistent with employee status.
- Full-time required. Working full-time is more consistent with employee status.
- Doing work on employer’s premises. Working on the employer’s premises (as opposed to from home or from a neutral site) is more consistent with employee status.
- Order or sequence set. Performing services in a particular order or sequence set by the employer is more consistent with employee status.
- Right to discharge. The company’s right to discharge a worker tends to suggest employee status.
- Right to terminate. A worker’s right to terminate the relationship without incurring liability to the company suggests employee status.
- Hiring, supervising, and paying assistants. A person who hires, supervises, and pays his/her own personal assistant is more likely to be an independent contractor.
- Significant investment. A worker’s own significant investment tends to indicate independent contractor status.
- Realization of profit or loss. A worker’s potential to realize a profit or to suffer a loss tends to suggest independent contractor status.
- Working for more than one club owner at a time. Working for more than one club at the same time tends to suggest independent contractor status.
So the answer to the question is most likely the dancers are employees and not independent contractors.
SO WHAT DOES THIS MEAN?
It means that adult entertainment dancers or “strippers” are entitled to the same protections as any employees.
If they get hurt on the job while dancing, then they should be entitled to medical care and wages under the workers compensation law.
It also means that unless there are drastic changes in payment policies, dancers are entitled to minimum wage and overtime if they work past 40 hours. The Club owner/management also cannot fire a dancer if she gets pregnant.
Club owners are going to have to do business differently by determining how they’re going to have to hire a dancer.
If you want to know if the Covid-19 messed up the strippers money go to my podcast Strippers Classification Status And Their COViD 19 Relief Exclusion!